HONG KONG (AP) — Chinese property developer Country Garden hopes to reach a deal with its creditors in February to restructure billions of dollars in debt, the company’s lawyer told a Hong Kong court Monday.

One of China’s biggest real estate companies, Country Garden defaulted on $11 billion in offshore bonds due in 2023 and said earlier this month that its debt restructuring proposal would reduce its $16.4 billion offshore debt by 70%.

The Hong Kong court adjourned Country Garden’s case until May 26 after the company asked for more time to reach an agreement with creditors.

Country Garden is one of dozens of real estate companies caught up in a crackdown on over-indebtedness that led many to default on their debts. Last week it said it posted a net loss of 12.84 billion yuan ($1.76 billion) in the first six months of 2024. In 2023, it posted a net loss of 178.4 billion yuan ($24.4 billion).

The company had delayed the release of results for its 2023 and 2024 interim results.

The debt-ridden real estate sector, once one of the strongest engines of growth for the world’s second-largest economy, is struggling to emerge from a prolonged slump.

House prices across China have fallen, even as policymakers have introduced measures such as reducing mortgage costs, lending to property developers and making it easier to buy homes.