COUNTRY GARDEN is about to hold a creditors' meeting.

Author | Zhou Zhiyu editor | Zhang Xiaoling encountered "since the establishment of the biggest difficulties" COUNTRY GARDEN, quickly took action. On the evening of August 12, COUNTRY GARDEN announced that it would suspend trading of 11 domestic corporate bonds from the opening of the market on August 14, 2023, and the resumption time will be determined separately. People from GARDEN COUNTRY told Wall Street that the group plans to hold a meeting of bondholders on the payment arrangement of domestic corporate bonds in the near future. In order to ensure fair information disclosure and protect the interests of investors, some domestic bonds will be suspended in accordance with relevant regulations. A person familiar with the debt restructuring of real estate enterprises in the capital management company believes that this is COUNTRY GARDEN is ready to first part of the domestic debt restructuring or extension, but whether it is the overall restructuring or one by one extension, still to be negotiated with creditors. It is only a matter of time before we push forward the restructuring of foreign debt. For real estate companies, debt extensions or restructurings are separated from debt defaults. At the beginning of this year, the COUNTRY GARDEN, which once restored its financing capacity in overseas markets and successfully obtained overseas financing through "domestic insurance and foreign loans", came to this step, full of bitterness and helplessness behind it. Originally, there are many people in the industry expected, COUNTRY GARDEN in the August 7 announcement of the dollar debt interest outstanding, can obtain institutional and regulatory support within a 30-day grace period, to keep their credit in the open market. However, with the creditors' meeting, the debt restructuring began. In the case of weak sales, financing channels are still not smooth, but have to invest a lot of money to ensure the delivery of the building, but also hard to repay the debt, COUNTRY the management of GARDEN can only make such a choice to tide over the current difficulties. An institutional person familiar with GARDEN in COUNTRY said that the pressure on GARDEN's maturing debt COUNTRY this year was mainly on domestic debt, and intermediaries also suggested that domestic debt should be restructured first. According to incomplete statistics from Wall Street, the principal amount of the 11 domestic corporate bonds that GARDEN involved in the suspension of trading in COUNTRY totaled about 15.7 billion yuan, all of which matured within one year. The largest amount is a private placement bond due on September 2, with a bond balance of 3.904 billion yuan. In terms of foreign bonds, COUNTRY GARDEN has 17 overseas bonds with a duration of $10.795 billion. January next year is a small peak in the maturity of its foreign debt. People close to the COUNTRY GARDEN also told Wall Street that the extension or restructuring of the debt will allow COUNTRY GARDEN to breathe and focus more on the "security building. He said that at present, there is no need to worry about the problem of COUNTRY GARDEN's "guaranteed delivery building". A lot of funds are in the regulatory account; after the delivery is completed, there will still be funds returning. Data show that COUNTRY GARDEN delivered 278000 residential units in the first half of the year, ranking first in the industry. The annual delivery plan for this year is 700000 sets. Mo Bin, president of COUNTRY GARDEN, said that he would put Baojiao Building in the first place to COUNTRY GARDEN's "self-help". Chairman of the Board of Directors Yang Huiyan also said on August 11 that he would do his best to ensure delivery, resolve the pressure of periodic flow, ensure orderly operation, and do his best to reverse the current dilemma. The current COUNTRY GARDEN, is experiencing liquidity difficulties, if the debt restructuring is successful, can protect the company's normal operation and repayment, restore liquidity, as the market picks up next, can focus funds into some good projects, pry more cash back. Since the Evergrande thunder in the second half of 2021, the four giants of the real estate industry have hurt two, COUNTRY GARDEN and Vanke as the representatives of the surviving real estate enterprises, and the identity of the largest private real estate enterprises, so that the COUNTRY GARDEN's persistence appears more difficult and valuable. However, after a year and a half more than Sunac, COUNTRY GARDEN is still on the road to debt restructuring. In the eyes of real estate industry insiders, it is not surprising that GARDEN is in liquidity trouble COUNTRY. It is a microcosm of the current real estate industry and the survival of housing enterprises. COUNTRY GARDEN's current trend is similar to the process of debt restructuring, with domestic debt extensions followed by foreign debt restructuring. However, the two companies have their own uniqueness, COUNTRY GARDEN's restructuring plan is still undecided. Moreover, after insisting on more time than Sunac and other real estate companies, GARDEN COUNTRY sold hundreds of billions more and delivered more than 100 million houses, and the risk has been reduced a lot. "COUNTRY GARDEN's debt rollover is likely to be easier because there is ample collateral," said one agency source. According to the COUNTRY GARDEN announcement, as of the end of 2022, the company's net assets are about 309.6 billion yuan, and the total equity saleable resources are about 1.2 trillion yuan (of which the acquired equity saleable resources are about 955.5 billion yuan). Another private real estate company believes that for the real estate industry, the COUNTRY of GARDEN for debt restructuring can be said to be exhausted. I hope that the industry can go lightly and continue to move forward. COUNTRY the direction of GARDEN debt restructuring will indicate whether the next dilemma of real estate can be resolved, and whether the industry can be reborn and move towards the future.