On June 30th, COUNTRY GARDEN (02007.HK) met its first interest payment obligation following the effectiveness of its overseas debt restructuring, fully and punctually paying $14.34 million (approximately RMB 97.51 million). This marks the second cash settlement after the restructuring plan was implemented.

The company's approximately $17.7 billion offshore debt restructuring officially took effect on December 30, 2025, representing one of the larger cross-border debt restructuring cases in China's real estate sector in recent years.

In the first week after the plan became effective, COUNTRY GARDEN paid a total cash consideration of approximately $398 million (over RMB 2.7 billion) to creditors participating in the restructuring. The June 30th interest payment is the first fulfillment of obligations under the new debt instruments created by the restructuring.

It is reported that the company arranged and allocated funds in advance, depositing the full $14.34 million (about RMB 97.51 million) into the designated payment account on the 29th, completing the preparation one day early.

Analysts point out that against the backdrop of ongoing industry liquidity pressure, the normal cash settlement behavior of COUNTRY GARDEN, as a leading private developer, is relatively rare. This helps rebuild credit expectations. Once such expectations solidify, it could send a positive, ice-breaking signal for improving the overall credit environment for private developers.

COUNTRY GARDEN stated that since the offshore debt restructuring plan took effect, the company has consistently prioritized safeguarding the legitimate rights and interests of all creditors, orderly advancing arrangements for the full debt settlement process, and fulfilling its restructuring commitments with actual cash payments.

It is noteworthy that this first interest payment coincides with a pivotal shift in the company's operational rhythm.

The management has clearly designated 2026 as the most critical year for transitioning from "ensuring housing delivery" to "normal operations" – aiming to complete most delivery tasks by mid-year, followed by a full shift towards repairing the balance sheet and resuming normal business operations.

Between 2022 and 2025, the company cumulatively delivered nearly 1.85 million housing units, largely completing its delivery guarantee tasks. In 2025, COUNTRY GARDEN's operating cash flow turned positive again, recording RMB 1.534 billion, indicating that the peak period for the company's rigid cash outflows is receding.