China’s Country Garden liquidation hearing adjourned again
Country Garden, the troubled Chinese property developer, got a temporary reprieve as the Hong Kong High Court adjourned a liquidation petition hearing to July 29, 2024, according to Reuters on Thursday.
No official reason was provided for this latest postponement. The initial hearing, scheduled for May, was previously postponed to June 11th to allow Country Garden more time to prepare its defense.
The ability to demonstrate progress in debt restructuring talks with offshore creditors will be critical for Country Garden in fending off the liquidation petition.
Advisors to Country Garden, a group of bondholders, and a group of bank lenders are currently engaged in due diligence, meticulously examining the developer’s financial health.
Country Garden, facing an $11 billion default on offshore bonds, is now focused on restructuring its debt. A liquidation petition was filed by Ever Credit Limited over a $205 million unpaid loan.
The company plans to present a debt restructuring proposal in the second half of 2024. Trading of Country Garden’s shares on the Hong Kong Stock Exchange has been suspended since April 2nd.