Evergrande urges offshore creditors to `avoid hostile actions’ while it evaluates workout plan on US$310 billion of liabilities
- Chinese developer issues statement after a group of offshore bondholders warned of enforcement action to recover their debt
- Evergrande says it needs more time to evaluate a workout plan given its expansive business and a large number of stakeholders and debt
The group will need more time to evaluate the number of potential solutions before it can further engage in substantive negotiations with offshore creditors, it said in a stock exchange filing on Tuesday, citing the large number of stakeholders and debt complexities.
The statement came after reports saying foreign creditors are preparing to take legal actions to compel the Guangzhou-based developer to honour its obligations, having defaulted on several payments on some of its US$20 billion worth of foreign-currency bonds late last year.
Evergrande’s shares fell by 6.4 per cent, their biggest single-day percentage decline in a month, to HK$1.74 on the Hong Kong stock exchange.
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“The group and its advisers have been proactive in communicating with a wide range of offshore creditors,” Evergrande said in a separate statement on its website late Monday. It asked offshore creditors to “exhibit patience by refraining from taking aggressive legal actions.”