The restructuring proposal includes a revised cash flow projection, said two of the sources who have direct knowledge and another person familiar with the matter, a standard part of a debt restructuring process to show creditors the firm's ability to meet its obligations.
The projection shows the developer expects a weaker cash flow in coming years compared with the estimates it had shared with some offshore creditors earlier this year, two of the sources said.
Details of the cash flow projection were not immediately known.
The sources declined to be identified as they were not authorised to speak to the media.
A spokesperson for Country Garden did not immediately respond to Reuters request for comment.
Once China's biggest developer, Country Garden defaulted on its $11 billion in offshore bonds late last year and is fighting a liquidation petition in Hong Kong. The next court hearing has been set for Jan 20, 2025.
Country Garden's revised cash flow outlook comes after the government has rolled out a raft of measures over the past year to revive the property sector, which has slumped in recent years as developers succumbed to a mountain of debt.
The finance ministry last week introduced new tax incentives to further lower the cost of home purchases and spur demand -- its latest support effort. China also cut benchmark lending rates by 25 basis points in October to try to boost demand.
If Country Garden can gain support from its key creditors for the restructuring proposal before the January court hearing, it would pave the way for the company to seek more time from the court to implement a restructuring plan.
