HONG KONG (AP) — Embattled Chinese language property developer Nation Backyard expects to achieve a cope with its collectors in February to restructure billions of {dollars} in debt, the corporate’s lawyer advised a Hong Kong court docket Monday.
One of many largest Chinese language actual property firms, Nation Backyard defaulted on $11 billion in offshore bonds in 2023 and mentioned earlier this month that its debt restructuring proposal would cut back its $16.4 billion offshore debt by 70%.
The Hong Kong court docket adjourned Nation Backyard’s case till Might 26 after the corporate requested for extra time to strike a cope with collectors.
Nation Backyard is one in all dozens of property firms caught up in a crackdown on extra borrowing that led many to default on its money owed. It mentioned final week that it posted a web lack of 12.84 billion yuan ($1.76 billion) within the first six months of 2024. In 2023, it reported a web lack of 178.4 billion yuan ($24.4 billion).
The agency had delayed posting the outcomes its 2023 and 2024 interim outcomes.
The debt-ridden property sector, as soon as one of many strongest engines of progress for the world’s second-largest financial system, is struggling to drag out of a protracted downturn.
House costs throughout China have fallen, whilst policymakers have launched measures akin to decreasing mortgage prices, lending to property builders and making it simpler to purchase properties.