SHANGHAI, Sept 12 — China’s largest private property developer Country Garden has won approval from its creditors to extend the repayments on six onshore bonds by three years, two sources familiar with the matter said today.

Onshore creditors voted yesterday for proposals by the distressed developer to extend repayments on eight onshore bonds worth 10.8 billion yuan (RM6.9 billion) by three years.

In the voting, which concluded by 10pm Hong Kong time (1400 GMT) on Monday, creditors approved extending six out of the eight bonds, the two sources said.

The other two bonds will see voting delayed, the two sources said, asking not to be named because they were not authorised to speak with media.

Country Garden did not immediately reply to a request for comment.

The company’s Hong Kong-listed shares rose 2.9 per cent after the news but are down nearly 61 per cent since the start of the year.

The latest voting came after Country Garden on September 1 gained approval from creditors to extend payments by three years for a 3.9 billion yuan (US$533 million)onshore private bond.

It also made a last-minute dollar coupon payment offshore last week to avoid a immediate default.

Country Garden, one of the few large Chinese developers that has not defaulted on debt obligations, has faced liquidity pressure with reduced available funds as sales plunged, its interim financial statements showed.

It has 108.7 billion yuan (US$14.9 billion) of debts due within 12 months, while its cash level are around 101.1 billion yuan as of end-June, according to the company’s interim financial statement.

In the offshore bond market, Country Garden has at least five coupon payments due this month, including two relatively sizable dollar bond coupons worth US$15 million due on September 17, and US$40 million on September 27, each with a 30-day grace period.

Any default by Country Garden would exacerbate the country’s spiralling real estate crisis, put more strain on its struggling banks and could delay the recovery of not only the property market, but the overall Chinese economy. — Reuters