10/7/2023 0 Comments Evergrande in default![]() ![]() In June, it assured investors that it was on track to deliver the plan by the end of July. International creditors had complained earlier this year that they had been left completely in the dark about the companies intentions.Īfter creditors demanded updates and threatened to take legal actions, Evergrande pledged in January that it would release “a preliminary restructuring proposal” within six months. The lack of a concrete proposal highlights the uncertainties surrounding Evergrande’s opaque restructuring of its huge debt and sprawling business operations at a delicate time for China’s property sector and economy. Andrea Verdelli/Bloomberg/Getty ImagesĮvergrande's international creditors threaten legal action over 'opaque' restructuring process To contain the fallout, the Chinese government has intervened to take a leading role in guiding the company through a restructuring of its debt and sprawling business operations.Ī pedestrian walks past apartment buildings at China Evergrande Group's City Plaza development in Beijing, China, on Friday, Dec. It defaulted on its US dollar bonds in December after scrambling for months to raise cash to repay creditors, suppliers and investors. The real estate company’s failure to meet its self-imposed deadline comes at a time when China’s entire property sector is dealing with a growing mortgage boycott and slumping housing sales.Īccording to an exchange filing on Friday, Evergrande offered instead some details on ‘preliminary restructuring principles’ for its offshore debt, and said it aims to announce “a specific offshore restructuring plan within 2022.”Įvergrande, China’s most indebted developer with $300 billion in liabilities, has been at the heart of the country’s real estate troubles since last year. China’s embattled property giant Evergrande has failed to deliver a preliminary debt restructuring plan it had promised by July 31, leading to further concerns about the future of the world’s most indebted developer.
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