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Investing.com-- Country Garden Holdings Company Ltd (HK:2007) agreed to some key restructuring terms with a group of bank creditors, Bloomberg reported on Friday, allowing the embattled Chinese developer a path towards an overall debt deal.
The company has sent a document to a group of banks known as the coordination committee addressing their concerns and detailing a $178 million compensation payment for the return of seized collateral, Bloomberg reported, citing people familiar with the matter.
The deal clears the path for a bigger debt restructuring, given that the bank group holds enough debt to block said restructuring. Country Garden’s next hearing is scheduled for August 11.
The company entered debt restructuring discussions over $14 billion of debt in 2023, joining a host of its peers in attempting to navigate a deteriorating real estate market in China.
Country Garden is nursing years of declining sales from a prolonged property market downturn in China, a trend that battered and wiped out the valuations of several other major developers, such as China Evergrande Group (HK:3333).
Country Garden’s shares rose 4% after the Bloomberg report, outpacing a 1% decline in the Hang Seng index.