At the group management meeting in April, the management of Country Garden put forward the working policy of "one floor, one guarantee and delivery" in view of the current main tasks. In addition, we should seize the opportunity and strive for more projects to enter the "white list".
On April 7, Country Garden issued an announcement to disclose the progress of its overseas debt restructuring and the appointment of legal counsel. After Country Garden announced on October 10, 2023 that it was seeking a comprehensive solution, it cooperated with creditors and main consultants and made positive progress in overseas debt restructuring. The company has set up a coordination committee representing bank creditors and a project team representing bondholders. At present, the two sides are discussing the information sharing mechanism and fee arrangement.
Country Garden is conducting feedback on due diligence issues, and referring to international best practice guidelines, including the Second Edition Statement of Principles on Global Experiences of Multi-creditors in Solving Debt Problems without Court Procedures and the Code for Handling Financial Difficulties of Hong Kong Enterprises.
Country Garden said that the main financial consultants are continuing to advance the preparation of the cash flow model. In addition, in order to provide a common information platform for creditors, the company has hired De Anhua to analyze the independent debt recovery rate of the group on the premise of being cautious to creditors, so as to help creditors make better rational judgments when examining the company’s operation in the future.
It continued that Country Garden plans to establish a regular communication mechanism with overseas creditors and update the restructuring process to overseas investors in a timely manner. The company reiterates that we are determined to promote a comprehensive solution that can ensure the long-term development of the Group, safeguard the rights and interests of all stakeholders and ensure fair treatment of all creditors.
Country Garden also said that the company has appointed Nianlida Law Firm as the main legal adviser for overseas debt restructuring. Nianlida Law Firm will work with the company and its main consultants to ensure a transparent and constructive dialogue between the company and overseas creditors.
At the end of February, Country Garden announced on the Hong Kong Stock Exchange that the company was informed of the liquidation petition filed by Ever Credit Limited to the High Court of the Hong Kong Special Administrative Region on February 27, 2024, concerning the unpaid term loan with a principal of about HK$ 1.6 billion between the petitioner (lender) and the company (borrower) and accrued interest. The company will strongly oppose the petition.
On March 28th, Country Garden announced that it would delay the publication of the 2023 performance report. The explanation given by the company for delaying the publication of financial reports is that the industry continues to fluctuate and the business environment faced by the company is becoming increasingly complex. It needs to collect more information to make appropriate accounting estimates and judgments. Affected by this, Country Garden shares have been suspended since April 2.
Written by: Nandu Bay Finance Society reporter Wang Yanling
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