China Evergrande revising terms of proposed restructuring

CHINA Evergrande Group said on Friday (Oct 20) it was revising the terms of a proposed offshore debt restructuring deal to meet the firm’s situation and creditors’ demand, without providing details.

Evergrande, which is at the centre of China’s property sector debt crisis, said late last month that its billionaire founder was being investigated over unspecified crimes. It has also said it was unable to issue new debt – a crucial step in a restructuring – due to an ongoing investigation of its main unit.

Bondholders of the embattled property developer said last week they were surprised by announcements that its restructuring plan failed to meet regulatory requirements, and raised concerns about a possible liquidation.

In the filing on Friday, the developer said the scheme sanction hearings for Hong Kong CEG-class debt holders and the TJ scheme have been vacated, while the hearing of the company’s application to the US bankruptcy court scheduled to be held on Oct 25 will be adjourned. REUTERS