HONG KONG — The troubled Chinese property developer Country Garden is anticipating a resolution with its creditors as early as February concerning the restructuring of its substantial debt load, as indicated by the company’s representative during a session in a Hong Kong court on Monday.

As one of the foremost real estate corporations in China, Country Garden faced a significant setback in 2023 when it defaulted on $11 billion worth of offshore bonds. Earlier this month, the company announced a strategy for restructuring that aims to slash its offshore debt, totaling $16.4 billion, by an impressive 70%.

The proceedings in the Hong Kong court were temporarily paused until May 26, at Country Garden’s request for additional time to finalize agreements with its creditors.

Country Garden is part of a larger group of property firms that have been significantly affected by a governmental crackdown on excessive borrowing, which has resulted in numerous defaults. Recently, the developer disclosed a net loss of 12.84 billion yuan (approximately $1.76 billion) for the first half of 2024, following a staggering net loss of 178.4 billion yuan (around $24.4 billion) reported for the entirety of 2023.

Additionally, the company had postponed the release of its interim results for both 2023 and 2024, reflecting the ongoing challenges it faces.

The heavily indebted property sector, which was once a key driver of growth for China’s economy, is now grappling with a prolonged downturn. Despite various measures introduced by policymakers—including reduced mortgage rates, loans to developers, and incentives aimed at homebuyers—home prices throughout the nation continue to decline.