On November 6th, according to the Financial News Network (reported by Wang Haichun), the successful pass of the restructuring of Country Garden's overseas debt has taken 300 days from the disclosure of key terms of the restructuring plan on January 9

On November 6th, announcement from Country Garden (02007.HK) stated that the company's overseas debt restructuring plan was approved at the creditors' meeting on November 5th.

In both debt group voting, the reorganization plan received more than 75% of the voting amount from creditors who were present and voted. Specifically, Group 1 (syndicated loan group) received 83.71% of the voting amount from creditors who were prese

This signifies that the leading private real estate enterprise has passed the most crucial checkpoint in its overseas debt restructuring. The total debt included in the overseas restructuring scope this time is approximately $17.7 billion, which is e

It is understood that in this overseas debt restructuring of Country Garden, various combinations of tools such as cash repurchase + equity tools + new debt replacement + physical payment of interest are adopted to systematically reshape the debt str

According to the company's disclosure, after the completion of the overseas reorganization with full subscription of all options, Country Garden is expected to reduce its debt scale by about $11.7 billion, corresponding to about RMB 84 billion in int

In addition to reducing the size of its debt, the company will also experience a significant decrease in financing costs. After the reorganization, the financing costs of the new debt instruments have been largely reduced to a low range of 1.0%-2.5%,

In terms of debt maturity structure, after the completion of the reorganization, Country Garden has an optional debt term of up to 11.5 years. Analysts believe that a longer debt repayment cycle arrangement will provide the company with more sufficie

This time, the overseas debt restructuring of Country Garden involves a large and complex scale of 34 overseas debts or debt repayment obligations covering a total of approximately US$17.7 billion principal and interest, spanning multiple legal juris

The complexity of the scheme design is doubled by the combination of different judicial systems, different issuance structures and different credit enhancement structures. To ensure the legal validity and overall feasibility of the reorganization pla

Country Garden has stated that during this prolonged period of negotiations regarding the reorganization, the company's management team has led their financial team to conduct overnight negotiations with creditors for several months. The complexity o

Industry insiders believe that the approval of the overseas debt reorganization of this leading private real estate enterprise is related to the set conditions of the reorganization, the company's capital recovery, and shareholder support to some ext

To maximize the recovery for creditors, the company has strengthened the asset enhancement of the post-reorganization debt instruments, with relatively high-quality overseas development projects, assets, and some domestic projects as the underlying s

In terms of capital turnover, Country Garden actively promotes the disposal of various assets to achieve a certain scale of capital recovery.

Since 2022, the company has recovered more than 65 billion yuan through asset disposal, including equity investments, large assets, and even official vehicles. In particular, Country Garden has sold several equity investments in the past year, raisin

Specifically, on April 25th this year, it sold approximately 11.063% of its shares in Blue Arrow Aerospace, reaping approximately 1.305 billion yuan in funds. Previously, on December 27th, 2024, it sold about 1.56% of its equity interest in Changxin

In terms of sales, according to the data released by Country Garden, the company achieved an equity contract sales amount of 2.9 billion yuan in October this year, with a contracted sales area of approximately 390,000 square meters. Therefore, in the

In addition, the support and guarantee provided by the controlling shareholder of Country Garden also played a supporting role in the approval of the reorganization.

On October 13th, the controlling shareholder of Country Garden signed an irrevocable commitment to convert the remaining amount of USD 1.148 billion in shareholder loans into equity. Since 2021, the controlling shareholder of Country Garden has provi

It is noteworthy that on the occasion of the successful restructuring of Country Garden's external debt, the company has also made significant progress in its domestic debt restructuring.

It is understood that the reorganization plan of eight domestic bonds of Country Garden has been approved by the bondholders' meeting on September 29th, involving a total principal amount of about RMB 13.332 billion.

Under full subscription of all options for domestic debt restructuring, the company is expected to achieve a reduction of over 50% in debt principal. The debt maturity can be extended up to 10 years, with no pressure of redemption within 5 years. The