A Hong Kong court on Monday adjourned a hearing into a petition seeking liquidation of Country Garden until Jan. 20, 2025, giving a breather to the embattled Chinese developer which is trying to finalise an offshore debt revamp plan.
Ever Credit Limited, a unit of Hong Kong-listed Kingboard Holdings (0148.HK), filed the liquidation petition against Country Garden (2007.HK) in February for non-payment of a $205 million loan.
The developer defaulted on its $11 billion worth of offshore bonds last year.
A lawyer for Country Garden told the court on Monday that the developer expected to publish offshore debt restructuring term sheets in September, and that it planned to seek approval from the court on that arrangement early next year.
The hearing into Country Garden's liquidation petition comes against the backdrop of Chinese authorities stepping up efforts to revive the property sector after it slipped into an unprecedented debt crisis in mid-2021.
Over the last couple of years, a growing list of developers have defaulted on their offshore debt repayment obligations.
Many are facing liquidation lawsuits filed by creditors, with the latest being state-backed Sino-Ocean Group (3377.HK). A handful, including sector giant China Evergrande Group (3333.HK), have been ordered to be liquidated so far.
