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Evergrande crisis: developer revises payment plan for wealth management investors as debt deadlines pile up
- Evergrande Wealth Management says it will pay investors 8,000 yuan (US$1,259) each for December, January and February
- Under the revised plan for the wealth management products, all interest payments will be paused from today.
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Embattled China Evergrande Group announced a new plan to repay investors in its wealth management products, in a move designed to reduce the number of individuals exposed to its debt crisis.
Evergrande Wealth Management said on Friday it will pay principal first on the overdue products, with all investors receiving 8,000 yuan (US$1,259) per month until February.
It replaces the company’s previous plan, unveiled in mid-September, in which it promised to pay 10 per cent of principal and interest in the month when the products were due, and another 10 per cent in each quarter after that. It also offered the option for investors to use the overdue proceeds to obtain houses or parking spaces and to pay the remaining balance on housing units.
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Under the revised plan for the wealth management products, all interest payments will be paused from today.
03:02
Chinese real estate giants Evergrande and Kaisa continue unloading assets to cover debt
Chinese real estate giants Evergrande and Kaisa continue unloading assets to cover debt
The amended plan aims to “take into consideration all the investors,” according to an announcement on the company’s website. It will reveal a new arrangement for future payments in the second half of March, it said.
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The change of strategy came as the world’s most indebted property developer faces a growing tide of debt maturity deadlines, unnerving tens of thousands of investors.
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