Embattled China Evergrande Group edged closer to a potential restructuring of part of its $300 billion debt burden by hiring outside advisers from US investment bank Houlihan Lokey and Hong Kong-based Admiralty Harbour Capital, reports The Wall Street Journal. Houlihan Lokey has a reputation for handling restructuring work.
In a statement to the Hong Kong stock exchange, Evergrande said the two firms would “assess the Group’s capital structure, evaluate the liquidity of the Group and explore all feasible solutions to ease the current liquidity issue and reach an optimal solution for all stakeholders as soon as possible.”
The Group’s financial troubles are starting to spread with shares of Evergrande New Energy Vehicle Group, the property developer’s would-be electric-car maker, plunging as much as 28% on Tuesday, adding up to a total loss of more than $80 billion in market value this year, reports Caixin.
The Hong Kong-listed company has become ensnared in the woes of its parent, who also said it made “no material progress” on plans to sell stakes in the electric-car unit, which was once one of its most valuable assets.