Debt-ridden property developer Country Garden has won approval from creditors for three-year extension for another onshore bond issued by its unit Guangdong Giant Leap Construction, the last in the batch of eight bonds it has been seeking extensions for, reported Chinese real estate news outlet Jianwen Real Estate.
To secure the successful extension, the company provided at least 200 million yuan receivables as collateral, the report said.
That came after another property developer Sunac China won creditors’ approval for its $9 billion offshore debt restructuring plan, the first green light of such a debt overhaul by a major Chinese developer.
The developments come as Beijing steps up efforts to revive the property sector, which accounts for roughly a quarter of the world’s second-largest economy, with a raft of support measures unveiled over the last few weeks.
The latest debt deals with creditors will give some breathing room to Chinese developers and help them avoid a default or a messy liquidation process, but the success of the agreements will depend on a recovery in the property sector.
