Country Garden has won approval from its creditors to extend the payment for a 3.9 billion yuan of onshore private bond that matures on September 2, in a vote that ended on Friday night, according to sources familiar with the matter
In the vote, 56.08% of participating Country Garden onshore creditors approved the extension, 43.64% opposed and 0.28% abstained, a document shared with bondholders showed.
The extension means the developer can repay the debt in instalments over three years, instead of meeting its obligations by Saturday. The bond is not publicly traded.
Country Garden still faces another major challenge next week, when the grace period ends for last month’s missed coupon payments worth a total of $22.5 million on the two offshore dollar bonds.