China Evergrande aims for offshore debt restructuring agreement with creditors by end of March, Hong Kong court hears

Name: The Evergrande theme park left derelict in China’s Jiangsu province
Uploaded: 2023-03-20T09:50:08.000Z
Duration: 2 min 35 s
Description: The Evergrande theme park left derelict in China’s Jiangsu province

The heavily indebted developer said it had the support of its overseas creditors and will publish the term sheets as early as Wednesday

The deal would be a big step for Evergrande on the path to restructuring its US$22.7 billion worth of offshore debt

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The heavily indebted company said it had acquired support from its overseas creditors for the proposed restructuring, and will publish the term sheets as early as Wednesday. Photo: Bloomberg

Yulu Ao

Published: 5:50pm, 20 Mar 2023Updated: 6:01pm, 20 Mar 2023

Embattled developer China Evergrande Group plans to unveil its offshore debt restructuring plan by the end of March, it said on Monday during a court hearing in Hong Kong.

The heavily indebted company said it had acquired support from its overseas creditors for the proposed restructuring, and will publish the term sheets as early as Wednesday.

The restructuring agreement is expected to be signed by the end of March and come into effect on October 1, according to the company.

The lawsuit in Hong Kong is related to a HK$862.5 million (US$110 million) alleged financial obligation.

If the agreement is done, it will be a big step for Evergrande Group on the path to restructuring its US$22.7 billion worth of offshore debt, which accounts for 7.5 per cent of the company’s total liabilities of more than US$300 billion.

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The Evergrande theme park left derelict in China’s Jiangsu province

The court postponed the company’s petition hearing to July 31.