(Reuters) -Embattled Chinese property developer Country Garden ( CTRYF ) said on Monday it had reached an agreement with a core group of bank creditors that holds 49% of its offshore debt, marking another step in its $14.1 billion restructuring plan.

Once China's largest developer, the company defaulted on $11 billion in offshore bonds in late 2023, adding to a sector-wide crisis that had already seen high-profile failures, including of China Evergrande Group ( EGRNF ).

Country Garden ( CTRYF ), seeking to slash its offshore debt burden by 78%, said holders representing 77% of its bond value had accepted its restructuring proposal.

A restructuring proposal normally requires support from more than 75% in creditor value to pass.

The deal follows the backing it won from a key bondholder group in April.

Country Garden ( CTRYF ) remains the subject to a liquidation petition, with a court hearing scheduled for January 2026. The developer said it was working with both bondholders and bank creditors to complete the documentation for the restructuring, which it expects to finalise by the end of 2025.