Published: 12:20pm, 20 Jan 2025Updated: 2:36pm, 20 Jan 2025
A Hong Kong court adjourned a liquidation petition hearing against indebted Chinese developer Country Garden Holdings on Monday after the company unveiled a restructuring proposal earlier this month.
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Justice Linda Chan adjourned the case until May 26 after hearing a petition from Ever Credit, a unit of Hong Kong-listed Kingboard Holdings, which makes laminates and chemicals.
At the hearing, Ever Credit asked the judge to grant an immediate liquidation order, while another creditor requested a four-week adjournment. Country Garden’s lawyer, Jose-Antonio Maurellet, told the court that the company needed another four months, but it should be able to agree on a term sheet with creditors by the end of February.
In a statement last week, Country Garden said it expected to reach an agreement with offshore creditors on a debt restructuring plan in the first half of 2025.
Earlier this month, the Foshan-based developer released its first proposal to restructure as much as US$11.6 billion in liabilities with multiple options including converting debt into cash or accepting extended maturity periods.
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The firm, once the largest mainland Chinese developer in terms of sales, entered a liquidity crisis in August 2023 when it missed a debt-repayment deadline for two US dollar-denominated bonds, triggering a sell-off in the industry. Country Garden’s Hong Kong-listed shares have been suspended since April 2, as it delayed the publication of its 2023 full-year and 2024 interim reports.