Debt-laden property developer China Evergrande Group plans to provide asset packages to its offshore creditors, reported Reuters.
These packages are likely to include shares in two overseas-listed entities.
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In an exchange filing, the property developer stated that the two overseas listed entities are Evergrande Property Services Group and electric vehicle maker China Evergrande New Energy Vehicle Group.
This move comes as the liquidity crisis continues to stifle China’s property sector.
Evergrande has more than $300bn in liabilities.
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On 29 July, while giving an update on its preliminary offshore restructuring proposal, the company stated that it expected due diligence work on the group to be finished in the near future, and it intends to come out with a particular plan within this year.
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By GlobalDataIt also stated that it would take a long time for the business to restore its operations in an orderly manner and asset value for all stakeholders, given the crisis-ridden condition of the real estate market in China and the complete size of the company’s assets and liabilities.
Earlier this year, the company commenced talks with its offshore creditors about the restructuring proposal following the demand of more transparency by a group of offshore bondholders.
Considered to be the world’s most indebted property developer, Evergrande’s complete $22.7bn worth of offshore debt, which comprises loans and private bonds, is considered to be in default as it missed out on payment obligations in 2021.
Meanwhile, the struggling developer’s subsidiary Evergrande Group (Nanchang) has been ordered to pay $1.08bn to a guarantor for its failure to honour its debt obligations, reported Reuters.
Last July, the guarantor offered a guarantee for the borrowings of some entities controlled by Evergrande.
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Image: The liquidity crisis is stifling China’s property sector. Credit: Andreas H. from Pixabay.
