(Yicai Global) March 13 -- China Fortune Land has come to an agreement with creditors regarding the repayment of CNY172.3 billion (USD25.1 billion) worth of debt, around 78.6 percent of the heavily indebted Chinese property developer’s current liabilities.

The new deal would see CNY17.6 billion (USD2.6 billion) worth of interest and penalties waived, the Beijing-based developer said over the weekend. Around a fifth of the debt being restructured, at USD4.9 billion, is held by subsidiaries.

Fortune Land has also brokered another deal with creditors to offset CNY9.9 billion (USD1.4 billion) worth of debt using some of its units’ equity.

China Fortune Land set up a creditor committee on Feb. 1, 2021 when the developer first defaulted on CNY5.3 billion (USD768 million) of bond principal and interest, saying at the time that it only had CNY800 million (USD116 million) in available funds.

Since then, the developer has made good progress in its debt reorganization and is expected to return to growth in 2022 with net profit of between CNY1.1 billion (USD159.3 million) and CNY1.6 billion, the firm said on Jan. 30.

Fortune Land’s share price [SHA:600340] closed flat at CNY2.59 (USD0.38) today.

Editor: Kim Taylor