According to a report from Caijing Network on November 6 (reported by Wang Haichun), the overseas debt restructuring of Country Garden has successfully completed after 300 days, from disclosing key terms of the restructuring plan on January 9th of th

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 votes, the restructuring 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 present

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 for this overseas debt restructuring, Country Garden has adopted a diverse combination of tools including cash repurchase + equity instruments + new debt replacement + physical interest payment, aiming to systematically reshape

According to the company's disclosure, under full subscription of all options in the overseas reorganization plan, Country Garden is expected to reduce its debt by about $11.7 billion, corresponding to about RMB 84 billion in interest-bearing debt af

Apart from reducing the size of its debt, the company will also see a significant drop in financing costs. After the restructuring, the financing costs of the new debt instruments have been largely reduced to a low range of 1.0%-2.5%, with the option

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 the longer repayment cycle arrangement will provide the company with sufficient finan

This time, the overseas debt restructuring of Country Garden involves a large and complex scale of debt, covering 34 overseas debts or debt repayment obligations with a total amount of about US$17.7 billion principal and interest, involving multiple

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 said that during this tug-of-war of restructuring, the company's management led the financial team to conduct "day and night" transoceanic negotiations with creditors for several months. Due to the large number of types of creditors an

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 turnover situation, and shareholder support t

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

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 raised over 65 billion yuan through asset disposal, which includes equity investments, large assets, and even official vehicles. In particular, Country Garden has sold a number of equity investments in the past year, raisi

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 approximately 1.56% of its equity in Changxin T

According to Country Garden's announcement, the company achieved equity contract sales of 2.9 billion yuan and a contract sales area of approximately 390,000 square meters in October this year. Through the first ten months of this year, the company a

In addition, the support and guarantee of Country Garden's controlling shareholders 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 lead in converting the remaining amount of the shareholder loan of 1.148 billion US dollars into equity. It is reported that since 2021, the controllin

It is noteworthy that while Country Garden's overseas debt restructuring was successful, the company also made important progress in restructuring its domestic debt.

It is understood that the eight domestic bond restructuring plans of Country Garden have been reviewed and approved by bondholders on September 29th, involving a total principal amount of approximately 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