Latest news with #CountryGarden
Mint
5 days ago
- Business
- Mint
Country Garden Agrees to Key Bank Demands, Easing Debt Deal Path
(Bloomberg) -- Chinese developer Country Garden Holdings Co. has agreed to some key restructuring terms a group of bank creditors had demanded, according to people familiar with the matter, potentially easing the path for an overall debt deal. The company, once China's biggest developer, has sent a document to a group of banks known as the co-ordination committee addressing their concerns. The document details a deal in which the key term is $178 million in compensation that Country Garden will pay the banks for the return of seized collateral, the people said, asking not to be identified discussing private matters. The committee had earlier said that failure to accept some of its demands would be a 'deal breaker.' With this hurdle cleared, the next step would be for banks to sign on to the broader restructuring deal. Gaining the support of co-ordination committee members is crucial for Country Garden because the group holds enough of the company's debt to block its restructuring. Country Garden is under pressure to get a debt deal done, with its next winding up hearing scheduled for Aug. 11. High Court Judge Linda Chan said in May that she wanted to see 'useful and good progress' in the next hearing. Country Garden declined to comment. Country Garden has been in talks with creditors to restructure $14.1 billion of offshore debt since it defaulted on its dollar debt in 2023. The issue of compensation for banks releasing collateral backing certain loans has been in focus since early in the process. To get its restructuring deal approved, Country Garden needs support from three-quarters of debt holders in two individual groups — bank lenders and bondholders. It has said that it has backing from holders of 70% of bonds, but even if it gets more from that class, it still needs bank creditors to get on board to pass the plan through a 'scheme of arrangement' procedure. --With assistance from Emma Dong. More stories like this are available on
Bloomberg
5 days ago
- Business
- Bloomberg
Country Garden Agrees to Key Bank Demands, Easing Debt Deal Path
Chinese developer Country Garden Holdings Co. has agreed to some key restructuring terms a group of bank creditors had demanded, according to people familiar with the matter, potentially easing the path for an overall debt deal. The company, once China's biggest developer, has sent a document to a group of banks known as the co-ordination committee addressing their concerns. The document details a deal in which the key term is $178 million in compensation that Country Garden will pay the banks for the return of seized collateral, the people said, asking not to be identified discussing private matters.
Mint
04-07-2025
- Business
- Mint
Country Garden Faces Grim Outlook as Sales Slump Deepens in June
(Bloomberg) -- Country Garden Holdings Co.'s sales slid again in June, with the developer faring worse than peers, as a lack of policy support dampened demand. Monthly contracted sales at the Foshan-based company dropped 35% from a year earlier to 2.81 billion yuan ($392 million), according to Bloomberg calculations based on a Friday filing. The decline was from an already low base, and was steeper than the 23% drop in new home sales for China's top 100 developers. Falling prices in China are eroding corporate profits and employee income, leading to suppressed demand for housing purchases, just as the effects of a stimulus blitz last September start to wear off. Premier Li Qiang last month pledged more action to revive the market, which analysts say is necessary to boost consumption and offset a threat to exports from US tariffs. Country Garden has been counting on a turnaround in sales as it seeks to restructure its debt after a default more than a year ago. Yet its efforts to win backing for a $14.1 billion offshore restructuring are running into resistance as a key group of banks said failure to accept some of their demands would be a 'deal breaker,' according to a court hearing last month. The builder needs support from three-quarters of debt holders among two individual groups — bank lenders and bondholders. It has said that it has backing from holders of 70% of bonds, but even if it gets more from that class, it still needs bank creditors to get on board to pass the plan through a 'scheme of arrangement' procedure. It has been given a few months' reprieve from its liquidation petition hearing, with the next one set for Aug. 11. Country Garden has said it aims to implement the proposed restructuring by the end of 2025 and wants to reach an agreement with its major creditors on the terms 'as soon as practicable.' --With assistance from Foster Wong. More stories like this are available on
Bloomberg
04-07-2025
- Business
- Bloomberg
Country Garden Faces Grim Outlook as Sales Slump Deepens in June
Country Garden Holdings Co. 's sales slid again in June, with the developer faring worse than peers, as a lack of policy support dampened demand. Monthly contracted sales at the Foshan-based company dropped 35% from a year earlier to 2.81 billion yuan ($392 million), according to Bloomberg calculations based on a Friday filing. The decline was from an already low base, and was steeper than the 23% drop in new home sales for China's top 100 developers.
Business Times
06-06-2025
- Business
- Business Times
Country Garden's May sales drop 28% with no revival in sight
[BEIJING] Country Garden Holdings' sales slide intensified in May, with the developer faring worse than the broader China housing sector. The Foshan-based company, once China's largest property firm, reported monthly sales that dropped 28 per cent from a year earlier to about 3.1 billion yuan (S$555.03 million), Bloomberg calculations based on filings from Friday show. The decline was from an already low base, and was much steeper than the 8.6 per cent drop in new home sales posted by the country's top 100 developers. Falling consumer prices in China are eroding corporate profits and employee income, leading to suppressed demand for home purchases, just as the effects of a stimulus blitz last September start to wear off. Buyers remain concerned about developers' ability to finish projects on time, leading new-home sales to drop since March after a brief period of stabilising. Country Garden has been counting on a turnaround in sales as the 33–year-old developer continues lengthy restructuring talks more than a year after defaulting on its debt. Yet its efforts to win backing for a US$14.1 billion offshore restructuring are running into resistance after a key group of banks said failure to accept some of their demands would be a 'deal breaker,' according to a court hearing last month. The builder needs support from three-quarters of debt holders in two individual groups – bank lenders and bondholders. It has said that it has backing from holders of 70 per cent of bonds, but even if it gets more from that class, it still needs bank creditors to get on board to pass the plan through a 'scheme of arrangement' procedure. It has been given a few months' reprieve from its liquidation petition hearing, with the next one set for Aug 11. The builder said it has seen stabilisation signs in a number of cities, according to a statement citing a May management meeting. But analysts remain concerned. Country Garden's contracted sales could face 'a protracted contraction on waning buyer sentiment in China's low-tier cities,' Bloomberg Intelligence analysts Kristy Hung and Monica Si wrote in a May report. BLOOMBERG
