Country Garden Presents Offshore Debt Restructuring Plan to Creditors

According to information provided by five knowledgeable sources to Reuters, while a debt-laden Chinese real estate developer is attempting to avoid liquidation, Country Garden presented some creditors with the preconditions for an offshore debt restructuring proposal at the end of last month.

Two of the sources noted that the restructuring proposal includes a revised cash flow projection and another informant indicated that showing the firm's ability to meet its obligations is a standard part of the debt restructuring process.

The two sources stated that the projection indicated the developer expects weaker cash flow in the coming years compared to estimates shared with some offshore creditors earlier this year. The details of the cash flow projection were not immediately known. The sources requested anonymity as they were not authorized to speak to the media.

A spokesperson for Country Garden did not immediately respond to a request for comment from Reuters.