China property crisis: Country Garden gets creditor approval to delay 6 bond repayments by 3 years as debt-saddled developer breathes again
- It got the approval of creditors who voted to delay the repayment of six of eight onshore bonds for three years, according to people familiar with the matter
- It comes after the home builder narrowly avoided default in the offshore bond market a week ago
It got the approval of creditors who voted between last Thursday and Monday of this week to delay the repayment of six of eight onshore bonds for a period of three years, according to people familiar with the matter.
The decision on the remaining two bonds, due in October and November, was pushed to another voting session due to be held later on Tuesday.
The results of the vote came after Country Garden on August 31 got the green light from 56.08 per cent of participating creditors to extend an onshore bond worth 3.9 billion yuan – the largest of its repayments due in 2023 – by three years, after previously twice delaying the vote.
Additionally, Country Garden Real Estate, a unit of the developer, said on Tuesday that it has laid out repayment methods for the interest of a yuan note due next Tuesday to ensure bondholders receive their money in time, a filing to the Shanghai Clearing House shows.