Country Garden appoints legal adviser, urges creditor patience

(Bloomberg) — Distressed Chinese property developer Country Garden Holdings Co. said it has engaged Linklaters LLP as the principal legal adviser for its offshore debt restructuring, while urging creditors to be patient with its progress.
Linklaters will facilitate communication between Country Garden and its offshore creditors, the company said in a statement to the Hong Kong stock exchange Sunday. Country Garden has also engaged Kroll LLC to perform an independent recovery analysis on the group to provide information for creditors, it said. 
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In its update, Country Garden said it had made “significant progress” on its restructuring plan and reiterated its determination to “advance a holistic solution” that ensures the long-term development of the group, safeguards the interests of all stakeholders, and ensures fair treatment of all creditors.
Once the largest developer by sales in China, Country Garden has become the poster child of the nation’s real estate crisis that’s seen the demise of the likes of China Evergrande Group and rattled financial markets.
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Country Garden’s financial woes are piling up, with an 83% slump in home sales last month exacerbating its cash crunch. The company recently warned it will miss a deadline for reporting annual results, causing its shares to be suspended from trading in Hong Kong.
Meanwhile, it’s also fighting off a winding-up petition in a Hong Kong court filed by a single creditor. The first hearing is scheduled for May 17, which means the clock is ticking for it to prove that its offshore restructuring is making progress in order to fend off a potential liquidation order. 
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An ad-hoc group of creditors have named PJT Partners Inc. as financial adviser and Kirkland & Ellis LLP as legal adviser, Bloomberg News reported in January. KPMG Advisory (China) Ltd. is the principal financial adviser for Country Garden’s restructuring. 
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