China Evergrande yet to reach agreement with overseas creditors on restructuring as deadline approaches

 

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Embattled property developer China Evergrande Group has yet to reach an agreement with overseas bondholders over a restructuring as a self-imposed July deadline to unveil a preliminary plan looms, reported the Wall Street Journal.

The two sides remain divided on the content of the announcement, apart from the company’s outlook and whether the reform plan can be disclosed, the report said citing sources.

China Evergrande, which has more than $300 billion in liabilities, defaulted on its US dollar bonds in December 2021 after months of liquidity problems. In late January, after creditors demanded updates and threatened to sue the company, Evergrande pledged to release a preliminary restructuring plan within six months.

However, due diligence on the scale of the company’s assets and liabilities remains underway, while advisors need more time to complete the assessment, the report said.

Original report: https://www.wsj.com/articles/china-evergrande-prepares-to-shed-light-on-restructuring-as-creditors-patience-wears-thin-11658309400