Country Garden news: It is related to the restructuring of overseas debts

On the evening of January 16, Country Garden announced that the company had appointed KPMG Advisory (China) Co., Ltd. as the main financial adviser for overseas debt restructuring.

Country Garden said that the company will continue to assess the group's liquidity position with the assistance of various financial and legal advisers, establish a cooperation and communication platform with all creditors, and jointly formulate an overall plan to comprehensively solve the company's current overseas debt risk. Currently, the work is ongoing.

Country Garden said it was determined to move forward with a comprehensive solution that would ensure the long-term development of the Group, safeguard the rights and interests of all stakeholders and ensure fair treatment of all creditors. In the process of overseas debt restructuring, the Group will make unremitting efforts to ensure delivery and operation. The Company looks forward to communicating and cooperating with creditors and calls on creditors for patience, understanding and support to work with the Company to develop solutions to overcome the challenges faced by the Company.

Country Garden also said that the company will actively promote offshore debt management measures, and formulate overall solutions in a fair and equitable manner to achieve a long-term and sustainable capital structure while respecting the existing legal status and legal repayment order of all creditors.

On January 15, Country Garden Group held its 2024 annual work conference. Yang Huiyan, Chairman of the Board of Directors of Country Garden Group, said, "Although the company is facing difficulties now, the dream of Country Garden has never changed." According to the content of the work meeting, Country Garden's key work in 2024 will still be to ensure delivery, operation and credit. "In the process of ensuring delivery and optimizing operations, we strive to maintain credit and do a good job in communication and arrangement with all relevant parties, so that the company can repair its balance sheet in an orderly manner in the process of ensuring delivery. ”

At the same time, Country Garden is also actively taking measures to save itself, open up sources and reduce expenditure, reduce costs and increase efficiency, strive to promote sales, revitalize assets, actively expand financing channels, and promote debt restructuring.

Since the second half of 2021, it has been two years since real estate companies have taken out insurance in batches, and the process of debt reduction has begun to accelerate significantly. Since the beginning of this year, a number of real estate companies such as Zhenro, CIFI, Aoyuan, and Longguang have disclosed phased progress in overseas debt restructuring.

Liu Shui, director of enterprise research at the China Index Research Institute, believes that "in 2024, more insurers will make significant progress in debt restructuring, and the risk clearance of real estate enterprises will be accelerated." At the same time, the successful debt restructuring of some real estate enterprises has strong reference significance for the debt restructuring and risk resolution of other insurance companies. For stable real estate enterprises, they can take advantage of the current loose financing policy to replace low-interest long-term funds and improve financial flexibility, and actively take advantage of the introduction of policies such as REITs to form a closed financial loop of property holding operations while revitalizing the property holdings and developing the asset management business. Insurers also need to take advantage of the current financial policy window to actively connect with financial institutions to fully display their debts, and at the same time actively revitalize existing assets and improve their own liquidity. ”

In addition, the China Index Research Institute expects that in 2024, the financial support policies for real estate enterprises are expected to continue to be refined, and if the policies such as "three not less than" can be substantively implemented, it will help improve the financing environment for enterprises, and the "guaranteed delivery" funds and supporting measures are also expected to be further followed up to promote the resolution of project delivery risks.

Editor-in-charge: Wan Jianyi

Proofreading: Zhu Tianting

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