Finance
Country Garden wins bank creditor group's support for offshore debt overhaul
Published by Global Banking and Finance Review
Posted on August 18, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 18, 2025
2 min readLast updated: January 22, 2026
Country Garden secures creditor support for its $14.1 billion debt restructuring, aiming to reduce its offshore debt by 78%.
(Reuters) -Embattled Chinese property developer Country Garden said on Monday it had reached an agreement with a core group of bank creditors that holds 49% of its offshore debt, marking another step in its $14.1 billion restructuring plan.
Once China's largest developer, the company defaulted on $11 billion in offshore bonds in late 2023, adding to a sector-wide crisis that had already seen high-profile failures, including of China Evergrande Group.
Country Garden, seeking to slash its offshore debt burden by 78%, said holders representing 77% of its bond value had accepted its restructuring proposal.
A restructuring proposal normally requires support from more than 75% in creditor value to pass.
The deal follows the backing it won from a key bondholder group in April.
Country Garden remains the subject to a liquidation petition, with a court hearing scheduled for January 2026. The developer said it was working with both bondholders and bank creditors to complete the documentation for the restructuring, which it expects to finalise by the end of 2025.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shilpi Majumdar)
Debt restructuring is a process in which a company reorganizes its outstanding debt obligations to improve or restore liquidity and financial stability.
Corporate bonds are debt securities issued by corporations to raise capital, where investors receive interest payments until the bond matures.
Offshore debt refers to loans or bonds issued by a company that are held outside its home country, often to take advantage of favorable tax laws.
A financial crisis is a situation in which the value of financial institutions or assets drops significantly, leading to widespread economic instability.
A restructuring proposal is a formal plan presented by a company to its creditors outlining how it intends to reorganize its debts and obligations.
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