Bei Jing Shang Bao·2025-11-06 05:21Core Viewpoint - Country Garden successfully completed a $17.7 billion offshore debt restructuring in 300 days, with over 75% approval from creditors, indicating a significant step towards financial recovery [1][5]. Group 1: Debt Restructuring Details - The offshore debt restructuring plan was approved on November 5, with a total debt amount of approximately $17.7 billion, equivalent to about 127 billion yuan [1]. - The restructuring involved 34 offshore debts or repayment obligations across multiple legal jurisdictions, including U.S. dollar bonds, convertible bonds under UK law, and syndicated loans under Hong Kong law [5]. - In the first group (syndicated loans), 33 out of 41 creditors voted in favor, representing 83.71% of the total claims of approximately $4.1 billion. In the second group (U.S. dollar bonds and others), 2,364 out of 2,382 creditors supported the plan, accounting for 96.03% of claims totaling about $11.2 billion [5]. Group 2: Implications of the Restructuring - The high approval rate reflects creditors' rational assessment, as liquidation could lead to lower recovery rates compared to the restructuring plan [6]. - The restructuring is expected to significantly reduce Country Garden's debt load, with an estimated reduction of interest-bearing liabilities by about $11.7 billion, leading to a substantial improvement in the balance sheet [6][7]. - The restructuring plan employs a combination of cash buybacks, equity instruments, new debt swaps, and physical interest payments, providing creditors with various options to choose from [7][8]. Group 3: Support and Future Outlook - The controlling shareholder provided crucial financial support, committing to subscribe for capitalized shares to offset approximately $1.148 billion in shareholder loans at a price of HKD 0.6 per share [8]. - The ongoing debt restructuring efforts across the industry are exploring diverse tools to enhance creditor options and expedite the restructuring process, creating a replicable framework for other distressed real estate companies [8].