Country Garden Holdings Co Ltd (2007.HK) saw its shares soar 6.98% in pre-market trading on Friday, following the announcement of significant progress in its offshore debt restructuring efforts. The embattled Chinese property developer has reached an agreement with creditors holding nearly 30% of its existing bond debt, marking a crucial step towards financial stability.

The proposed restructuring plan covers an aggregate outstanding principal amount of approximately $14.07 billion of Country Garden's existing debt. The company has secured support from an ad hoc group (AHG) of creditors representing 29.9% of the aggregate principal amount of existing bond debts. Additionally, Country Garden is close to finalizing negotiations with certain members of a coordinating committee (COCOM) comprising seven banks holding $3.6 billion in syndicated loans.

In a separate development boosting investor confidence, Country Garden's chairperson, Yang Huiyan, has agreed to convert her $1.15 billion shareholder loan. This move involves purchasing a 60% stake in the company's Malaysian unit for $50 million and using the balance to subscribe to more shares in the company. The restructuring is expected to result in a significant reduction of Country Garden's current weighted average financing cost to either 1.0%, 2.0%, or 2.5% per annum, further improving the company's financial outlook. These positive developments have reignited investor interest in the once-troubled property giant, leading to the substantial pre-market rally.