The indebted Chinese real estate giant Evergrande assured that it aims to be able to present a “preliminary restructuring proposal” to its creditors. over the next six months.
Evergrande held last night a conference call with your creditors, after which it sent a statement to the Hong Kong Stock Exchange, where it is listed, in which it explains that “it reiterated its position that will evaluate the conditions of the group, with a view to formulating a restructuring plan that protects the rights of all the parties involved”.
The document only adds the aforementioned term and indicates that the “audit work”, while promising creditors that it will “continue to listen carefully to their opinions and suggestions”.
Investors did not seem too optimistic about the latest news, as evidenced by the fact that Evergrande’s shares in Hong Kong fell more than 6.2% on Thursday. shortly before 12:00 noon local time (04:00 GMT).
This same week, the conglomerate had already published a statement in which he asked for patience from his creditors, whom he also urged not to “take aggressive legal action” while continuing to analyze the actual status of the corporate accounts and preparing a reorganization plan.
That was the company’s response to information published in the international press, which pointed out that Evergrande’s ‘offshore’ bondholders would be preparing to claim through the courts that the Chinese firm complies with its obligations.
It has also recently emerged that authorities in the southeastern province of Canton -which intervened in Evergrande at the beginning of December 2021- would announce before March a framework for the debt restructuring plan, and that they would have all the details ready by October.
In total, Evergrande has issued around $20 billion in offshore bonds, and leading rating agencies such as Fitch they already consider that they have incurred default on part of them.
According to data offered in the middle of last year by the company, its total liabilities exceed 300,000 million dollars, although the situation became especially difficult to sustain after, in August 2020, Beijing announced restrictions on access to bank financing for promoters which, like Evergrande, had accumulated a high level of debt, supporting their growth for years with aggressive leverage policies.
(With information from EFE)