Zhi Tong Cai Jing·2025-11-14 01:48Core Viewpoint - Country Garden (碧桂园) is proposing a debt restructuring plan aimed at significantly deleveraging the company by reducing debt by over $11 billion, contingent on creditor participation and conversion of certain financial instruments into equity [1][2]. Group 1: Debt Restructuring Plan - The proposed restructuring plan aims to create a sustainable capital structure, allowing the company to focus on housing delivery, business operations, and asset value maximization [1]. - The company has received sufficient support from first and second-tier creditors to approve the plan at a meeting scheduled for November 5, 2025 [1]. - The restructuring is expected to be completed by the end of 2025, with the company working closely with a project team and coordination committee [1]. Group 2: Issuance of Convertible Bonds - The company plans to issue up to $7.515 billion in Mandatory Convertible Bonds (A), with a portion allocated for restructuring support fees and work fees [2]. - Additionally, up to $5.4426 billion in Mandatory Convertible Bonds (B) will be issued as part of the plan, along with $39.4614 million in Mandatory Convertible Bonds (C) related to a bilateral loan solution [2]. Group 3: Share Issuance - The company proposes to issue up to 914 million new shares to settle various work fees owed to project teams and bondholders, with a nominal value of approximately HKD 914.22 million [3]. - If necessary regulatory approvals are not obtained, the company may issue an additional 42.21 million shares at an initial conversion price of HKD 2.60 per share to cover fees [3]. Group 4: Loan Settlement - The company intends to issue up to 16.8498 million new shares to settle accrued and unpaid interest on a bilateral loan from Dah Sing Bank, amounting to HKD 43.8096 million [4]. - The issuance price for these shares will be HKD 2.60, representing a premium of approximately 390.57% over the last closing price [4]. Group 5: Management Incentive Plan - A management incentive plan is proposed to motivate key management and employees to effectively execute the business plan and improve financial performance [5]. - The plan's terms will be subject to the listing rules and require shareholder approval at a special meeting [5]. - The company has entered into share purchase agreements with subsidiaries to sell certain shares, which will result in the financial performance of these subsidiaries no longer being consolidated into the company's financial statements [5].