China Evergrande delays decision on offshore debt restructuring to October

EMBATTLED property developer China Evergrande Group said on Friday (Sep 8) it has delayed making a decision on offshore debt restructuring from September to next month.

The company delayed the decision to allow Hong Kong CEG class holders of debt more time to consider its fresh restructuring plan.

The meetings for CEG class A and class C debt holders were earlier scheduled for Sep 26. They will now be held on Oct 16 and 17, Evergrande said in an exchange filing.

Evergrande is at the centre of a crisis in China’s property sector that has seen a string of debt defaults since late 2021. Trading in the company’s stock was suspended for 17 months till Aug 28.

Evergrande needs approval from more than 75 per cent of the holders of each debt class to approve the plan, which offers creditors a basket of options to swap debt for new bonds and equity-linked instruments backed by its stocks and those of its Hong Kong-listed units. REUTERS