Country Garden's offshore debt restructuring plan was approved by voting, with an expected debt reduction of 84 billion yuan.
Recently, Country Garden reappeared on the Fortune Global 500 list in 2025, attracting attention.
On November 6th, Country Garden announced another piece of good news: the company's overseas debt restructuring plan was successfully passed at the creditors' meeting on the 5th. In the voting of the two debt groups, more than 75% of the debt amount of the creditors present and voting voted in favor. This means that the overseas debt restructuring of this leading private real - estate enterprise has overcome the most crucial hurdle.
According to the announcement, in the case of full subscription of all options in the overseas restructuring plan, after the completion of the restructuring, Country Garden is expected to reduce its debt by approximately US$11.7 billion, corresponding to approximately RMB 84 billion of interest - bearing debt. At the same time, after the completion of the restructuring, it is expected to recognize a maximum restructuring gain of approximately RMB 70 billion.
Next, Country Garden will conduct a "recognition hearing" at 10:00 a.m. (Hong Kong time) on December 4, 2025. If the court rules in favor, Country Garden's asset - liability situation will be significantly improved.
Country Garden's announcement
The scale of Country Garden's overseas debt restructuring this time is huge and the structure is extremely complex, covering 34 overseas debts or debt - repayment obligations with a total principal and interest of approximately US$17.7 billion, covering multiple legal jurisdictions, including US dollar bonds governed by New York law, convertible bonds governed by UK law, and syndicated loans governed by Hong Kong law. The superposition of different judicial systems, different issuance structures and different credit - enhancement structures has multiplied the complexity of the plan design. On this basis, Country Garden also comprehensively considered the guarantee obligations at the listed - company level and the handling of multiple bilateral debts to ensure the legal validity and overall enforceability of the restructuring plan.
This restructuring tug - of - war lasted for 300 days. From the disclosure of the key terms of the restructuring plan on January 9th, to the official announcement of the restructuring support agreement on April 11th, and then to the passing of the vote at the creditors' meeting on November 5th, during this period, the Country Garden team has been in close communication with creditors from all parties. Through intensive proactive communication and pragmatic negotiations, they gradually laid the foundation of trust among creditors and won the early support of representative creditors.
According to the announcement, the overseas debt restructuring vote held by Country Garden on November 5th involved 2,423 creditors, who voted in two categories. The first category was the syndicated - loan group, with a total of 41 creditors holding a total claim amount of approximately US$4.1 billion for the voting plan. Among them, 31 creditors voted in favor, and the corresponding debt amount accounted for 83.71% of the debt amount of the creditors present and voting in Group One; the second category was the US dollar bond and other debt group, with a total of 2,382 creditors holding a total claim amount of approximately US$11.228 billion for the voting plan. Among them, 2,364 creditors voted in favor, and the corresponding debt amount accounted for 96.03% of the debt amount of the creditors present and voting in Group Two.
During this several - year - long in - depth adjustment of the real - estate industry, the debt risks of real - estate enterprises have been extremely high, and the situation they face is more severe than ever. According to data from the China Index Academy, real - estate enterprises first encountered risks in 2020, the number of troubled real - estate enterprises increased to 16 in 2021, and 2022 saw an explosion, reaching 44.
However, different from most troubled real - estate enterprises, Country Garden chose to initiate negotiations actively before a public default, which is regarded by the market as a "preventive restructuring". On August 10, 2023, Country Garden issued a profit warning; on August 13th, it suspended trading of its domestic corporate bonds and launched an overall extension plan; on January 16, 2024, Country Garden announced the appointment of external advisors to formulate an overall plan for overseas debt restructuring to comprehensively resolve debt risks. Under the main tasks of "ensuring housing delivery, stabilizing assets and debts, and ensuring business operations", Country Garden's overseas restructuring work officially kicked off.
In the process of debt restructuring, to maximize the recovery of creditors, Country Garden adheres to the principle of "giving as much as possible overseas", continuously strengthens the asset credit enhancement of the post - restructuring debt instruments, and supports the restructuring value with high - quality overseas development projects and assets and some high - quality domestic projects; at the same time, it sets up a cash - sweeping and account - supervision mechanism to help creditors maximize their recovery through the cash generated by the credit - enhanced assets.
At the same time, the restructuring plan provides rare cash resources in the overseas restructuring cases of domestic real - estate enterprises and offers equity - tool options. Creditors can share Country Garden's potential future upside through equity tools and exit through the secondary market. The setting of the plan options demonstrates Country Garden's greatest sincerity and sense of responsibility in ensuring creditors' recovery.
Most importantly, Country Garden's controlling shareholder showed great sincerity and won the trust of creditors: on October 13th, the controlling shareholder of Country Garden signed an irrevocable commitment and took the lead in converting the remaining part of the US$1.148 billion shareholder loan into shares in full. The firm support of the controlling shareholder has become the key "ballast stone" for this restructuring.
Since the debt restructuring in August 2023, the controlling shareholder and the family have provided approximately HK$3 billion in cash support to the company; in May this year, the controlling shareholder mortgaged the shares of other listed companies it holds to provide a RMB 1 billion shareholder loan, which is specifically used for ensuring housing delivery or other purposes designated by the special team; since 2021, they have provided a total of approximately HK$10.6 billion in interest - free and unsecured loans and other cash support to the company; the family has also provided guarantees for the company's relevant notes with four venture - capital assets with an original investment cost of RMB 2.58 billion.
The company's performance and continuous operation ability are the foundation for the successful resolution of debts. According to the operation data released by Country Garden on November 4th, from January to October this year, Country Garden's contract sales amount was approximately RMB 27.96 billion. According to data from E - House Think Tank, in the TOP150 sales performance of typical real - estate enterprises in China from January to October 2025, Country Garden ranked 10th in terms of sales area with 4.049 million square meters.
According to the public data of Country Garden, in the process of "ensuring housing delivery" from 2022 to the present, Country Garden has delivered more than 1.8 million housing units in total. Among them, nearly 700,000 units were delivered in 2022, more than 600,000 units in 2023, 380,000 units in 2024, and more than 130,000 units in the first 10 months of 2025.
In addition, since 2022, Country Garden has actively promoted the disposal of various assets, with a total cash - back of more than RMB 65 billion, covering equity investments, large - scale assets and even official vehicles. Among them, Country Garden has intensively sold a number of equity investments in the past year, raising approximately RMB 6.374 billion: on April 25, 2025, it sold approximately 11.063% of the shares of LandSpace Technology for a total of RMB 1.305 billion; on December 27, 2024, it sold approximately 1.56% of the equity of Changxin Technology for a total of RMB 2 billion; on September 24, 2024, it sold 1.79% of the equity of Wanda Commercial Management for a total of RMB 3.069 billion.
A series of actions have provided strong support for the implementation of Country Garden's restructuring plan and the continuous improvement of its business.
According to statistics, up to now, the total debt - resolution scale of real - estate enterprises has exceeded RMB 1.2 trillion. Against the background that the debt - resolution of real - estate enterprises has entered the deep - water zone and the credit environment of private real - estate enterprises still needs to be improved, the implementation of Country Garden's overseas debt restructuring has milestone - like significance for the industry. This restructuring has accelerated the risk - clearing process of leading real - estate enterprises, effectively alleviated the market's systematic concerns about private real - estate enterprises, helped improve the overall credit environment of private real - estate enterprises, and promoted the evolution of the industry from "intensified credit stratification" to "leading high - quality enterprises stabilizing first".