Shang Hai Zheng Quan Bao·2025-11-06 05:33Core Viewpoint - Country Garden's offshore debt restructuring plan was successfully approved at a creditor meeting on November 5, marking a significant milestone for the company in overcoming its debt challenges [2][4]. Group 1: Debt Restructuring Approval - Over 75% of the voting creditors by debt amount approved the restructuring plan in both debt groups, with 83.71% approval in the syndicated loan group and 96.03% in the USD bond and other creditors group [4]. - The creditor meeting for the first group involved 41 creditors with a total debt amount of $4.1 billion, while the second group attracted 2,382 creditors with a total debt amount of approximately $11.23 billion [4]. - The high participation and support rates reflect creditors' recognition of the company's debt restructuring plan, laying a solid foundation for its implementation [4]. Group 2: Expected Outcomes of Restructuring - Following the restructuring, Country Garden anticipates a debt reduction of approximately $11.7 billion, corresponding to about 84 billion RMB in interest-bearing debt [5]. - The company expects to recognize a maximum restructuring gain of around 70 billion RMB, significantly enhancing its net assets [5]. - The financing costs for new debt instruments are projected to drop to a range of 1.0% to 2.5%, which will save substantial interest expenses and alleviate cash flow pressure [5]. Group 3: Role of Major Shareholders - The controlling shareholder played a crucial role in the restructuring process, committing to convert $1.14 billion in shareholder loans into equity at a price of HKD 0.60 per share [8]. - Since 2021, the controlling shareholder has provided approximately 10.6 billion HKD in interest-free, unsecured loans and guarantees for related notes [8]. - The restructuring employs a combination of cash buybacks, equity instruments, new debt swaps, and physical interest payments to systematically reshape the debt structure [8]. Group 4: Domestic Debt Restructuring Progress - Concurrently, Country Garden's domestic debt restructuring is nearing completion, with eight out of nine domestic bonds totaling approximately 13.33 billion RMB already approved by bondholders [8]. - The company reported a revenue of approximately 72.57 billion RMB and a net loss of about 19.65 billion RMB in its mid-2025 earnings report [8]. Group 5: Sales and Deliveries - As of October 2023, Country Garden achieved a contract sales amount of approximately 27.96 billion RMB, with over 1.8 million homes delivered since 2022 [9]. - The company has raised over 65 billion RMB through asset disposals since 2022, including approximately 6.374 billion RMB from selling various equity investments [9].