Country Garden submits offshore debt restructuring plan to some creditors

China's Country Garden submitted the preliminary terms of an offshore debt restructuring proposal to some creditors late in October, said five sources familiar with the matter, as the struggling property developer tries to avoid liquidation.

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The 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 to 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 in 2024, two of the sources said.

Details of the cash flow projection were not immediately known.

A spokesperson for Country Garden did not respond to Reuters, request for comment.

The sources declined to be identified, as they were not authorised to speak to the media.

Once China's biggest developer, Country Garden defaulted on its US$11 billion (S$14.8 billion) in offshore bonds late in 2023 and is fighting a liquidation petition in Hong Kong. The next court hearing has been set for Ian 20, 2025.