Evergrande Bondholders Dismiss Plan to Delay US$671M Payment

• 12 July 2022
• International News
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China Evergrande’s bondholders have dismissed a plan to delay payment for 4.5-billion-yuan, accounting for a US$671 million bond, according to Asia Financial on 11 July 2022.

Evergrande told the Shenzhen Stock Exchange that it was in talks with bondholders to reach an agreement as soon as possible.

In the statement, Evergrande added that it was working on a debt restructuring plan, that wants offshore creditors, who are owed nearly US$23 billion to help fight the liquidating lawsuit when it will be handed over to court on 31 August.

Last week, Evergrande was checking to see if offshore creditors will back its plan to fight a lawsuit in Hong Kong aimed at liquidating the group.

However, Top Shine Global Ltd, an investor in Evergrande unit Fangchebao (an online real estate and automotive platform), has filed a winding-up petition against Evergrande as it has not honoured an agreement to repurchase shares from Top Shine in Fangchebao.

According to the same source, the world’s most indebted developer has in the past proposed paying foreign creditors owed about $19bn in staggered cash instalments or equity in its services unit or its EV unit.

Evergrande is now on the verge of collapsing over US$300 billion in debt and has become the poster child of the country’s property sector crisis as it has failed to pay its creditors regularly.

For Cambodia, this crisis might affect the expatriate Chinese population, in Cambodia and put pressure on Chinese developers, as Managing Director of CBRE Cambodia James Hodge explained in a recent CPM article. (Read more)

• Economy and Finance