COUNTRY GARDEN(HK:02007) 证券时报·2025-11-20 08:09Core Viewpoint - Debt restructuring has become a key strategy for distressed real estate companies to mitigate risks amid a deep adjustment in the industry [1][2]. Group 1: Debt Restructuring Tools - Mandatory convertible bonds have emerged as a crucial tool in the debt restructuring plans of leading real estate firms like Country Garden, Sunac China, and CIFI Holdings, shifting the focus from mere debt extension to substantial debt reduction [2][4]. - The essence of mandatory convertible bonds is to "exchange time for space," allowing companies to align with their current debt repayment capabilities while providing creditors with a choice that balances security and returns [2][5]. Group 2: Recent Developments - Country Garden announced a successful vote on its offshore debt restructuring plan, involving approximately $17.7 billion in debt, with over 83.71% approval from the syndicate loan group and 96.03% from the dollar bond group [4]. - The restructuring plan includes the issuance of nearly $13 billion in mandatory convertible bonds, with specific amounts allocated to different bond series [4]. Group 3: Benefits of Mandatory Convertible Bonds - Mandatory convertible bonds reduce future cash flow pressure, lower interest burdens, and enhance capital adequacy, while also creating equity that can improve long-term capital returns [5][7]. - The design of these bonds includes terms that provide certainty for debt reduction and potential upside for creditors, balancing the interests of both parties [7][8]. Group 4: Industry Impact - The restructuring efforts have led to a total debt reduction of approximately 1.2 trillion yuan across 21 distressed real estate companies, significantly alleviating short-term repayment pressures [8][10]. - Successful debt restructuring is seen as a recognition of companies' future potential by creditors, allowing for a more flexible operational environment and supporting the overall stabilization of the real estate market [10].