Embattled China Evergrande Group has announced a long-awaited restructuring plan to tackle at least $19.15 billion of offshore debt, including proposals to swap its creditors’ debt into shares of some Hong Kong-listed affiliates, such as China Evergrande New Energy Vehicle Group, reports the South China Morning Post. “The proposed restructuring will alleviate the company’s pressure of offshore indebtedness and facilitate its efforts to resume operations and resolve issues onshore,” the company said in a filing to the Hong Kong stock exchange late on Wednesday night.
The latest progress in tackling more than $300 billion of total liabilities at the world’s most leveraged property developer is expected to provide a pointer for restructuring efforts by other developers such as Sunac China Holdings and Zhenro Properties Group, and will likely impact hundreds of supply chain partners.
The company, founded by tycoon Hui Ka Yan, is offering holders of its offshore debt a number of options with the aim of securing their support by March 31.
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