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Embattled property developer China Evergrande Group has been working with its financial and legal advisors to review the company’s situation in an effort to draft a debt restructuring solution that respect the rights and interests of all parties concerned and to resume its operations in an orderly way, according to a filing to the Hong Kong Stock Exchange late Friday.
The company has been having constructive communications with multiple investors that hold dollar bonds issued by Evergrande and its overseas subsidiary Scenergy Journey Limited and their advisors in order to get an offshore debt restructuring plan, it said.
The two sides are working together closely with regular communications, conducting necessary due diligence on Evergrande’s core business and exploring potential debt restructuring plan, it said.
Given the company’s size and complexity and the current situation of the real estate sector, the due diligence is still in process, it said.
Evergrande’s contracted sales reached 12.26 billion yuan in the first half of the year and floor area sold during the period amounted to 1.193 million square meters, it said.
The company is sparing no effort to maintain stable production and operations and make an all-out effort to promote production resumption to safeguard rights and interests of homebuyers and creditors, it said.
So far, 96% of the group’s projects that have been sold but not delivered have partially or fully resumed construction and the number of workers for the construction has reached 86% of the normal level, it said.
Since July 1, 2021, China Evergrande has completed and delivered about 232,000 units of properties, with a floor area of 24.19 million square meters, according to the filing.