HONG KONG: China Evergrande Group said on Friday (Jul 29) that it can arrange asset deals that may include equity in its two just offshore listed units as being a sweetener for updated offshore debt.
The two outlined units are Evergrande Property Services Group Ltd and electrical vehicle maker Cina Evergrande New Energy Vehicle Group Limited.
Evergrande stated in a long-awaited up-date on its initial offshore restructuring suggestion that it expected research work on the group to be completed in the near future, plus it aims to achieve more progress and announce a specific offshore restructuring plan within 2022.
The planet’s most indebted property or home developer’s entire US$22. 7 billion worth of offshore debt including loans plus private bonds is deemed to be in default after missing transaction obligations late this past year.
The developer began talks along with offshore creditors concerning the restructuring proposal earlier this year, after advisers for any group of offshore bondholders demanded more transparency from the developer.
Evergrande said upon Friday the due diligence process remains on-going, given the group’s size and difficulty and the “dynamics the girls finds itself in”.
It expected it would take a fairly long time for the business to restore orderly operations and asset worth for all stakeholders, because of the real estate markets in The far east and the overall dimension of the company’s property and liabilities.