China Fortune Land Development debt restructuring progresses amid new legal challenges

As of October 31, 2025, China Fortune Land Development (CFLD) has restructured 192.67 bn yuan in financial debt through various agreements, including 37.13 bn yuan in onshore corporate bonds and $4.96 bn in offshore dollar bonds. This restructuring has resulted in 20.20 bn yuan in waived interest and penalties. Additionally, 23.63 bn yuan in financial and operational debt has been settled through equity transfers to CFLD’s "Happiness Select Platform" and "Happiness Premium Platform." However, CFLD still faces 24.57 bn yuan in overdue debts, excluding interest.

The company recently faced a pre-restructuring application from Longcheng Construction Engineering Co., Ltd., which the Langfang Intermediate People's Court has accepted. This application alleges CFLD's inability to repay due debts and seeks a pre-restructuring process. CFLD also reported new litigation and arbitration cases totaling 438m yuan between October 1 and October 31, 2025.

CFLD's shares experienced abnormal fluctuations on November 13 and 14, 2025, with a cumulative deviation of 20% from the closing price. The company reported a net loss of 9.83 bn yuan for the first three quarters of 2025, with a negative net asset value of 4.74 bn yuan as of September 30, 2025, highlighting ongoing operational and debt-related risks.