Law firms Sidley Austin and Maples Group are currently advising one of China’s largest private property developers, Country Garden, on a staggering $17 billion offshore debt restructuring effort. The news comes via Law.com International, from which it has been gleaned that the property developer is considerably distressed, wrestling with upwards of $190 billion in total liabilities.
This formidable situation includes nearly $11 billion in offshore debt and another $6 billion in offshore loans. Country Garden is teetering on the precipice of a default on its offshore debt, notably as the 30-day grace period for a required $15.4 million payment culminates on October 17. To add to their woes, it was previously unable to settle a HKD $60 million debt payment. As the situation unfolds, the eyes of international legal professionals are expected to monitor the progress of this major debt restructuring endeavor closely.