Country Garden was petitioned for liquidation and bankruptcy was imminent.

Country Garden was petitioned for liquidation and bankruptcy was imminent.

Country Garden objected to the liquidation petition, and the company was finally liquidated.

On February 28, 2024, Country Garden announced that the company was informed that EverLimited filed a liquidation petition against the company in the High Court of the Hong Kong Special Administrative Region on February 27, concerning the unpaid term loan with a principal of about HK$ 1.6 billion and accrued interest between the petitioner and the company.

On October 10, 2023, Jiantao Group announced that Country Garden failed to repay the money according to the financing agreement, and the lender issued a statutory demand for repayment to Country Garden, demanding repayment of some due payables. As of October 10, 2023, the outstanding principal amount of Country Garden was still HK$ 1.598 billion.

In this regard, Country Garden said that the debt amount of the company involved in Jiantao Group accounts for a very low proportion of the overall interest-bearing liabilities abroad, and the radical action of a single creditor will not have a significant impact on the company’s security, normal operation and overall restructuring of overseas debts. The company resolutely opposes the petition for liquidation, and will seek legal advice, take all necessary actions, and actively and properly defend with the consulting team.

Country Garden also said that at present, all the operations of the company are normal, and it will continue to focus on ensuring delivery and operation, and protect the rights and interests of all stakeholders, including house owners, creditors, investors and employees, to the greatest extent. The presentation of the petition does not mean that the petitioner can successfully liquidate the company. On the date of announcement, the High Court did not issue a liquidation order to liquidate the company. The High Court has set the first hearing date of the petition as May 17, 2024.

Regarding the restructuring of overseas debts, Country Garden said that since it was announced that it could not repay all overseas debts as scheduled, the company has hired financial and legal consultants to assist in evaluating the capital structure and liquidity of the Group and formulating an overall solution. At present, an effective communication mechanism has been established with the representative groups of major overseas creditor groups, and the overall restructuring of overseas debt is being actively and orderly promoted.