(Reuters) -Embattled Chinese property developer Country Garden has secured support from nearly 75% of bondholders for a plan to restructure its offshore debt, Bloomberg News reported on Thursday.
The company defaulted on its offshore debt in late 2023 and has since proposed to restructure its obligations by eliminating 78% of about $14.1 billion of its overall dues.
While Country Garden is close to securing the required 75% bondholder support, a key group of bank creditors has not yet signed on to the plan, Bloomberg News said, citing people familiar with the matter.
Country Garden did not immediately respond to a Reuters email seeking comment outside regular business hours.
Last month, the real estate firm said it was close to finalising negotiations with the bank creditors group, known as the co-ordination committee, while announcing support from another bondholder group.
The developer had urged other creditors to agree to the restructuring agreement by Friday, May 23 in order to bolster its defense at a liquidation hearing scheduled for Monday.
Once China’s top developer by sales, Country Garden’s downturn in fortunes intensified a debt crisis that was already gripping rivals such as Evergrande.
(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Savio D’Souza)
