KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
China’s once-largest property developer, Country Garden, has agreed to a key term demanded by its bank creditors, potentially unlocking progress toward a long-awaited US$14.1 billion debt restructuring deal, according to Bloomberg.
What Just Happened?
Country Garden will pay US$178 million (≈ RM751 million) to compensate banks in exchange for the return of seized collateral.
The proposal was detailed in a document sent to the banks’ coordination committee, a crucial group holding enough debt to block or approve the restructuring.
The committee had earlier warned that not agreeing to this term would be a deal-breaker.
Why This Matters
Time is ticking: Country Garden’s next winding-up hearing is on August 11, and the High Court expects to see clear progress by then.
Key milestone: Getting coordination committee support now clears a major roadblock on the company’s path to restructuring.
Background Recap
Country Garden defaulted on its offshore dollar debt in 2023.
It has been in ongoing talks to restructure US$14.1 billion in debt.
Approval of the debt plan requires:
75% support from two groups: bank lenders and bondholders.
Country Garden already has 70% backing from bondholders, but still needs bank support to proceed under Hong Kong’s scheme of arrangement mechanism.
Conclusion & Key Takeaways:
US$178M compensation deal may unlock broader restructuring progress
Aug 11 court deadline puts pressure on swift agreement
Support from bank creditors is critical — this move may tip the scales
Restructuring affects US$14.1B in offshore debt, with global investor interest
If the bank group signs on, a full restructuring deal could soon be within reach — giving Country Garden a shot at stability in a still-fragile Chinese real estate market.
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