Country Garden liquidation hearing pushed to January 2025

Country Garden gets a breather: A Hong Kong court has postponed the hearing for Country Garden's liquidation petition to January 20, 2025. The delay provides the troubled Chinese property developer more time to complete its offshore debt restructuring.

The petition, filed by Ever Credit Limited, an arm of Hong Kong's Kingboard Holdings was lodged in February due to Country Garden's failure to repay a $205 million loan. The developer defaulted on $11 billion in offshore bonds last year.

Debt restructuring terms expected

On Monday, Country Garden's lawyer informed the court that the company anticipates releasing its offshore debt restructuring terms in September and aims to obtain court approval for the plan early next year.

The court's decision comes as Chinese authorities intensify efforts to rejuvenate the real estate sector, which has been struggling since mid-2021 due to a severe debt crisis. 

Numerous developers have defaulted on their offshore debts, with some facing liquidation lawsuits from creditors. Recent cases include the state-supported Sino-Ocean Group, and several major firms like China Evergrande Group have already been ordered into liquidation.

(With Reuters Inputs)