© Reuters. FILE PHOTO: The Evergrande Middle of China Evergrande Group is seen in Shanghai, China September 24, 2021. REUTERS/Aly Tune
By Clare Jim and Xie Yu
HONG KONG (Reuters) – China Evergrande Group is aiming to unveil some debt restructuring phrases earlier than the subsequent winding-up court docket listening to on March 20 with a view to search one other adjournment, two sources with information of the matter instructed Reuters.
The world’s most indebted property developer has been attempting to achieve agreements with main offshore bondholders on phrases together with swapping a part of its debt into fairness, the sources and two different individuals stated.
Evergrande, which has greater than $300 billion in liabilities, of which $22.7 billion is offshore debt, started one in all China’s largest debt-restructuring processes early final yr however has but to achieve agreements with bondholders on the small print.
As soon as China’s top-selling developer, Evergrande has been on the centre of a property debt disaster that has seen a number of builders default on offshore debt obligations over the previous years, forcing many to enter into debt restructuring talks.
Evergrande is because of seem in a Hong Kong court docket on March 20 for listening to on a winding up petition filed by a creditor.
Within the final November listening to, the choose ordered Evergrande to realize some “concrete” progress on the debt revamp course of and supply a progress report 14 days forward of the subsequent listening to, or by round March 6.
The developer instructed the court docket at the moment it aimed to win collectors’ approval for its debt restructuring proposals by as early as the top of February.
The negotiations with bondholders are nonetheless ongoing, the 4 sources stated. Three of the sources stated the newest dialogue is focussing on the value and ratio of swapping some debt into fairness of Evergrande’s two listed models in Hong Kong.
The developer’s two Hong Kong-listed models are Evergrande Property Providers Group and Evergrande New Power Car Group.
The sources couldn’t be named as a result of the restructuring discussions are personal.
Evergrande declined to remark.
The debt-to-equity swap plan was urged by Evergrande as a core a part of its restructuring plan, however bondholders have been pushing for higher phrases, three of the sources stated.
One in all them stated Evergrande has made “some compromise”, however there was nonetheless a mismatch in expectations. Bondholders have additionally been pushing Evergrande Chairman Hui Ka Yan to place in additional of his personal cash to repay debt, the individual added.
In July, the developer stated it will supply its offshore collectors asset packages which will embody shares in two overseas-listed models, and was later stated to be contemplating onshore property as sweeteners for the restructuring plan.
The developer sat down with some offshore bondholders in-person in Hong Kong for the primary time in January after they began official negotiations on the restructuring phrases in a digital assembly in December, sources have instructed Reuters.
