A residential area of Country Garden in Nanjing, Jiangsu province, China.
Costfoto/NurPhoto/Getty Images
Country Garden’s creditors agreed to extend the repayments on six onshore bonds by three years, Reuters reported.
The property giant had previously proposed to extend payments on eight onshore bonds worth $1.5 billion.
The news sent Country Garden’s shares up by as much as 10% on Tuesday.
Chinese property giant Country Garden’s share prices sunk by 50% this year amid its liquidity woes and a real-estate crisis in the country, but the stock recovered some losses on Tuesday amid a reprieve from the company’s creditors.
The company’s shares surged as much as 10% on Tuesday after news broke that its creditors agreed to extend repayments on six of its onshore bonds by three years, Reuters reported on Tuesday, citing two sources familiar with the matter.
On Monday, the developer’s creditors voted on the company’s proposal to extend the maturity of eight onshore bonds by three years, according to Reuters. The bonds are collectively worth 10.8 billion Chinese yuan, or $1.48 billion.
Creditors approved the extension for six of the bonds. Voting on the remaining two bonds has been delayed.
Country Garden’s latest reprieve came a week after it paid the interest on two US dollar bonds within their grace periods. On September 1, the real estate company also managed to get creditors’ approval to extend the maturity of a separate 3.9 billion yuan onshore bond.
The developments at Country Garden are closely watched because the company — which had almost $200 billion in liabilities at the end of 2022 — is the latest high-profile Chinese real-estate giant to face a liquidity crunch in two years. China’s economy has also been struggling to recover following the COVID-19 pandemic.
The drama at the private developer even renewed contagion fears that trouble in the world’s second-largest economy could spill over to other sectors in the country and globally.
Country Garden did not immediately respond to a request for comment from Insider.
Country Garden Holdings’ stocks were 5.8% higher at 1.09 Hong Kong dollars, or 14 cents, apiece at 2.25 p.m. local time. They are nearly 50% lower so far this year.