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It emerged that Country Garden, the Chinese property developer, managed to secure a deferral from the Hong Kong High Court, postponing its liquidation hearing until early next year. The hearing had been scheduled for this month but has now been pushed to early 2026, giving the firm a valuable window to pursue creditor backing for a sweeping offshore debt restructuring. The proposal aims to cut around USD 14.1 billion of liabilities by roughly 78 per cent, and winning sufficient support remains crucial to persuading the court to dismiss the petition.
Hong Kong judiciary's website recently published a notification confirming Country Garden has obtained a deferral of its liquidation hearing, now slated to take place early next year. The hearing had originally been due this month; however, stakeholders jointly applied for the adjournment, which the High Court approved. Advertisement
Country Garden had defaulted on its offshore debt towards the end of 2023 and has since been pursuing a restructuring plan intended to reduce approximately USD 14.1 billion of that debt by around 78 per cent. This scheme relies heavily on securing lender support to convince the court to reject the winding-up petition brought by Ever Credit, a unit of Kingboard.
It was indicated that the petitioner had shown willingness to support the proposed restructuring, subject to certain further terms and conditions, when submitting the joint adjournment application. This development grants the company additional time to rally creditor backing and strengthen its legal position.
Once considered one of China's largest property developers by sales, Country Garden is now focused on regaining financial stability through a negotiated settlement with its lenders. The extended period before the hearing will be critical for the company to consolidate backing, finalise its restructuring strategy, and present a convincing case to the court.
With the hearing now rescheduled to early next year, the developer must make effective use of this time to consolidate support and sharpen its legal arguments. The level of lender commitment in the coming months will be decisive in determining whether the court dismisses the winding-up petition, allowing Country Garden to navigate a path toward long-term financial stability.
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