China Evergrande defers scheme meeting to reassess terms of proposed restructuring, ET RealEstate

September 23, 2023

BENGALURU: China Evergrande said on Friday it would not be conducting the scheme meeting scheduled on Sept. 25 and Sept. 26 as the embattled property developer considers it necessary to reassess the terms of the proposed restructuring.

Evergrande on March 22 announced plans for the restructuring of its $22.7 billion in offshore debt. But since then, sales of the group has not been as expected by the company, it said.

“Based on the company’s current situation and consultations with its advisors and creditors, the company considers it necessary to reassess the terms of the proposed restructuring to meet the company’s objective situation and the demand of the creditors,” it said in a filing.

Evergrande needs approval from more than 75% of the holders of each debt class to approve the plan, which offers creditors a basket of options to swap debt for new bonds and equity-linked instruments backed by its stocks and those of its Hong Kong-listed units.

With more than $300 billion in total liabilities, including offshore debt, Evergrande has been at the centre of a property debt crisis, in which multiple Chinese developers defaulted over the past year, forcing many to enter debt restructuring talks.

Separately, on Sunday police in southern China detained some staff at Evergrande’s wealth management unit, suggesting a new investigation that could add to the property giant’s woes.

  • Published On Sep 23, 2023 at 07:00 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer

Leave a Comment