Sou Hu Cai Jing·2025-11-06 10:23Core Viewpoint - Country Garden's offshore debt restructuring plan has been successfully approved by creditors, marking a significant milestone in the company's efforts to manage its substantial debt burden, which totals approximately $17.7 billion [2][5]. Group 1: Debt Restructuring Process - The restructuring process took 300 days, starting from the announcement of key terms on January 9, 2023, to the creditor meeting on November 5, 2023, where the plan was approved [2][3]. - The restructuring involves two debt groups, with over 75% of the voting creditors in both groups approving the plan: 83.71% in the syndicated loan group and 96.03% in the USD bonds and other debts group [2][5]. - The restructuring encompasses a total of 34 offshore debts or repayment obligations, amounting to approximately $17.7 billion, across various legal jurisdictions [3][4]. Group 2: Financial Impact and Debt Reduction - The restructuring is expected to reduce Country Garden's debt by approximately $11.7 billion, equivalent to around RMB 84 billion, and confirm a restructuring gain of up to RMB 70 billion [7]. - The new debt instruments will have significantly lower financing costs, ranging from 1.0% to 2.5%, which will alleviate cash flow pressures by saving substantial interest expenses [7]. - The debt maturity structure will be extended, with some options allowing for a maximum term of 11.5 years, providing financial buffer space for the company [7]. Group 3: Broader Industry Context - Country Garden's restructuring success serves as a reference for the industry, highlighting the importance of diverse tools in debt restructuring, such as cash buybacks, equity instruments, new debt exchanges, and physical interest payments [9]. - The overall debt restructuring efforts in the real estate sector have led to a total debt reduction of approximately RMB 1.2 trillion among 21 distressed companies, significantly easing their short-term repayment pressures [8]. - Following the restructuring, Country Garden can shift focus from survival to development, including restarting new project investments and optimizing regional strategies [10].