Chinese property firm Country Garden announced Monday that its controlling shareholder has agreed to convert $1.14 billion worth of shareholder loans into equity as a core measure in its offshore debt restructuring plan.
According to a filing with the Hong Kong stock exchange, Concrete Win Limited—an entity under the control of Country Garden’s major shareholder—will subscribe to new shares priced at HKD 0.60 each, a slight premium to the stock’s HKD 0.59 closing value on Monday. The conversion will proceed when the restructuring plan comes into effect.
Country Garden has set creditor meetings for November 5, when votes on the restructuring proposal will be held, including separate ballots for holders of its 2023 and 2026 convertible bonds. A court hearing on the developer’s liquidation petition is scheduled for January 2026.
The company made notable headway in August when it reached an agreement with a core group of banks representing nearly half of its $14.1 billion in offshore debt exposure, a significant development in its restructuring process.
On the operational side, Country Garden disclosed earlier in the day that its September contracted sales stood at CNY 2.58 billion ($361.75 million), down 29% year-on-year.
Country Garden, formerly China’s largest property developer, defaulted on billions of dollars in offshore bonds in late 2023, becoming the latest casualty in a sweeping real estate crisis that has already claimed major players such as China Evergrande Group.
