A group of offshore creditors of China Evergrande Group said they were “left in the dark” after the developer scrapped a meeting for its dollar bond restructuring plan.
The holders of more than $6 billion of Evergrande’s offshore public bonds implored the company to resolve any regulatory issues with the country’s securities regulator and top economic planning agency, describing the development as a “complete surprise,” according to a press release Monday.
That come after Evergrande said late last month that it was canceling key creditor meetings and must reassess its proposed restructuring, saying that it’s been unable to meet regulator qualifications to issue new bonds.
Evergrande’s position “that the restructuring cannot be implemented for regulatory reasons just does not add up,” according to the press release.
“It is difficult to believe that NDRC would actually stop a distressed company from restructuring” by means of amending defaulted debt, it added, referring to the state planning agency National Development and Reform Commission.
The ad hoc creditor group is advised by Moelis & Company Asia Ltd. and Kirkland & Ellis, and its members comprise international investors based in New York, London and Hong Kong, the release said.