Country Garden Wins Key Vote to Restructure Massive Debt

Shareholders of Chinese property developer Country Garden have approved a plan to restructure approximately $13 billion in bonds. The vote, concluded on Wednesday, is a critical step for the company to avoid a potential default. The plan extends repayment deadlines for nine different bonds denominated in U.S. dollars. This provides the cash-strapped developer with urgently needed financial breathing room. Country Garden is one of China's largest real estate firms. It and other developers have faced a severe crisis since 2021, when authorities tightened rules on borrowing. This has led to a series of defaults across the industry, shaking market confidence. The successful vote allows Country Garden to proceed with the formal restructuring. The company stated the plan is essential for managing its debt and ensuring stable operations. The outcome offers a temporary reprieve as China's broader property sector continues its slow recovery.