Evergrande Offshore Bondholders Shocked By Legal Barriers to Debt Restructuring
Offshore bondholders of China Evergrande are surprised that the real estate developer's proposed debt restructuring does not adhere to legal requirements, citing a lack of documentation and regulatory uncertainties. Liquidation is imminent.
China Evergrande’s Offshore Bondholders Seek Regulatory Clarity Amid Debt Restructuring Uncertainty
The group of offshore bondholders for China Evergrande Group (3333. HK) expressed surprise at the real estate developer’s recent admission that its proposal to restructure its offshore debt did not adhere to legal standards on Monday.
The ad hoc bondholder organization claimed in a statement that despite repeated demands, Evergrande had not provided any documentation or filings. An inquiry for comment from Reuters received no response right away from Evergrande.
Evergrande revealed in late September that its efforts to restructure its offshore debt would be in tatters since Chinese regulators had said it would be unable to issue additional financing due to an inquiry into its primary unit.
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The ad hoc group claimed it was pressing the deeply indebted Chinese real estate developer to ask regulators for a decision that would permit the restructuring to move through.
“This is the only way the cloud of uncertainty surrounding the regulatory issues can be resolved,” the statement continued.
“Until then, the base case is that China Evergrande Group will be liquidated at the next winding up hearing on Oct 30, 2023.”
On that day, a winding-up petition against Evergrande is scheduled to be heard at a Hong Kong court.
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