According to the Securities Times APP, before the market opened on September 27, Country Garden Holdings (00884) announced significant progress in the comprehensive overseas debt solution. In the announcement, the company joyfully announced that it had formally signed a Restructuring Support Agreement (RSA) with members of the bondholder group (AHG), with the bondholder group collectively holding 46.9% of the outstanding principal of overseas notes and 31.1% of the total overseas principal debt.

The announcement detailed the restructuring framework of Country Garden based on the principles of 'short-term debt reduction, mid-term conversion to stocks, and long-term preservation of principal with interest rate reduction', providing creditors with eight options, including short-term notes, short-term loans, mid-term notes + mandatory convertible bonds, long-term notes, mid-term notes, mid-term loans, long-term loans denominated in USD, and long-term loans denominated in RMB.

Furthermore, to encourage creditors to participate in the restructuring as soon as possible, Country Garden will pay early consent fees to creditors who sign the RSA before 5:00 pm Hong Kong time on October 27, equivalent to 0.2% of their RSA debt principal and accrued interest from January 1, 2023, to September 30, 2024; and will pay general consent fees to creditors who sign the RSA before November 27 Hong Kong time, equivalent to 0.1% of their RSA debt principal and accrued interest from January 1, 2023, to September 30, 2024.

In the announcement, Country Garden stated that the comprehensive restructuring proposal for overseas debt, once completed, will relieve the company's working capital pressure, provide a sustainable capital structure for the company, and create long-term value for all stakeholders. In addition, the company's long-term plan is to gradually transition to a light-asset business model, retain core resources and capabilities to weather the deep adjustment cycle of the china real estate development industry. The company will continue to collaborate with the bondholder group and their advisors on the detailed arrangements for the proposed restructuring, and actively engage with other creditors to promote the restructuring.

Industry analysts believe that Country Garden's overseas restructuring involves 10 senior bonds, 1 convertible bond, and 1 perpetual bond, as well as 13 overseas loans, with a total principal scale of 6.858 billion US dollars, involving a wide variety of investors and presenting considerable restructuring challenges. The current plan offers many options, likely the result of repeated adjustments based on the various demands of creditors. The plan also allows for some flexibility, establishing a profit-sharing mechanism that allows the company to adjust cash outflows appropriately based on sales conditions, facilitating timely compliance with its obligations.