From Reuters via Asia Financial, November 30:
The crisis-hit real estate giant, with more than $300 billion in liabilities, has until Monday to come up with a revised debt restructuring proposal, a judge ruled
China Evergrande Group, the world’s most indebted property developer, is desperately working to secure a last-minute debt restructuring deal to avert a potentially imminent liquidation.
The defaulted company has until a Hong Kong court hearing on Monday to present a “concrete” revised debt restructuring proposal for offshore creditors, a judge said last month after its original plan had lapsed.
But sources say creditors are unlikely to accept Evergrande’s new proposal given the low recovery prospects and growing concerns about the developer’s future.
With more than $300 billion in liabilities, Evergrande exemplifies the crisis in China’s property sector, which makes up one-quarter of the world’s second-biggest economy. The authorities have scrambled to support the sector as the troubles of embattled developers roiled global markets.
Guangzhou-based Evergrande, which defaulted on its offshore debt in late 2021, did not respond to a request for comment.
Ahead of the hearing when the Hong Kong High Court will rule on a liquidation petition, Evergrande this week offered to swap some debt held by offshore creditors into equity in the company and two Hong Kong-listed units, and repay the rest with non-tradeable “certificates” backed by offshore assets, two sources said.
The offshore assets include the developer’s minority stakes in other companies and its receivables, one of the two sources said, and the certificates would be redeemed by Evergrande when it successfully disposes of the assets.
The plan is not expected to require regulatory approval, as Chinese regulators have banned the developer from issuing new bonds, he added....
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