Evergrande aims to unveil debt restructuring in six months’ time after bond defaults as creditors begin to lose patience

Name: New Evergrande protests amid reports troubled Chinese property giant ordered to raze development
Uploaded: 2022-01-27T05:19:02.000Z
Duration: 1 min 29 s
Description: New Evergrande protests amid reports troubled Chinese property giant ordered to raze development

Evergrande says it ‘will continue to listen carefully to the opinions and suggestions of the creditors’ and will formulate a preliminary restructuring plan

Company tells investors on a call that it will treat onshore and offshore bondholders equally

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China Evergrande Group has promised investors that it will work out a debt revamp plan in the next six months. Photo: Reuters

Pearl Liu

Published: 1:19pm, 27 Jan 2022Updated: 5:24pm, 27 Jan 2022

Embattled China Evergrande Group has promised investors and creditors that it will roll out a debt restructuring plan in the next six months.

The world’s most indebted developer with 1.97 trillion yuan (US$310 billion) of liabilities “will continue to listen carefully to the opinions and suggestions of the creditors” and will formulate a preliminary restructuring plan, it said in a filing to Hong Kong stock exchange late on Wednesday, after a call with investors.

The Chinese real estate firm stressed during the call that it will treat all bondholders, onshore and offshore, equally, according to people familiar with the matter.

The call was arranged after Evergrande urged offshore creditors on Tuesday to give it more time to evaluate some potential solutions. A group of investors holding its dollar-denominated bonds threatened to take legal action against the developer based on concerns about asset dissipation, saying they must be consulted before any sale.

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New Evergrande protests amid reports troubled Chinese property giant ordered to raze development

Evergrande has been trying to offload its assets, including its 26-storey China Evergrande Centre headquarters in Hong Kong and dozens of projects on the mainland since last year when the company’s debt repayment issues started to mount.

So far, the company has not had any success in divesting its assets.

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