Chinese firm Evergrande to announce debt restructuring plan

The Chinese company Evergrande must announce a debt restructuring plan

Real estate group China Evergrande is due to announce a debt restructuring plan this week that will determine its future and how Beijing plans to weather the crisis in the real estate sector.

With more than 300 billions of dollars in debt, Evergrande has been at the center of China's real estate slump since last year. The company is struggling to repay its suppliers and creditors as well as investors in wealth management products, after Beijing launched measures to control the debt levels of developers.

Evergrande, in default on its $22.7 billion of offshore debt, announced in March that it would unveil a preliminary restructuring plan by the end of July. .

This offshore debt restructuring plan should serve as a model for its cash-strapped counterparts.

The restructuring proposal comes at a time when China's macroeconomic conditions have deteriorated and the property sector is facing unprecedented challenges.

The world's second-largest economy, including the real estate sector accounts for a quarter, however narrowly avoided a contraction in the second quarter.

Some foreign creditors of Evergrande said there were still disagreements on how to repay and reorganize the debt, which could lead to a delay in the implementation of the restructuring.

Evergrande CEO Siu Shawn, however, told the 21st Century Business Herald that the company had reached basic consensus with overseas creditors on the principles and framework of the proposal. restructuring.

In May, Reuters reported that the group plans to repay approximately $19 billion in debt to foreign creditors through cash installments and shares in two of its listed subsidiaries.

In mainland China, Evergrande has extended its debt repayment obligations.

The latest proposal from x27;extended repayment of a 4.5 billion yuan ($666.7 million) bond from the developer was rejected this month.

Evergrande aims also to publish a simple restructuring plan for its national debt this week, the f news provider reported on Friday. financial resources.

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