EGRNF - China Evergrande restructuring plan includes range of options for creditors - report

March, 22 2023 07:40 AM China Evergrande Group

2023-03-22 07:40:13 ET

China Evergrande Group ( OTC:EGRNF ) ( OTC:EGRNY ) is set to announce on Wednesday its restructuring proposal for $22.7B of offshore debt that would give creditors a number of options for converting their debt into new bonds with extended maturity and equity in the property developer's two Hong Kong-listed subsidiaries — Evergrande Property Services Group ( OTC:EVGPY ) ( OTC:EVGPF ) and Evergrande New Energy Vehicle Group ( OTC:EVGRF ) ( CEEVG ).
The new bonds will come in several tenors and coupons, Reuters reported, citing people two people with knowledge of the proposal. The longest tenor would be eight years with ~9% coupon, one person said .
China Evergrande ( OTC:EGRNF ) has been struggling with more than $300B in total liabilities, including the offshore debt, when China cracked down on swelling debt loads in the Chinese property markets. China Evergrande defaulted on some of its offshore debt in late 2021.
On Monday, the company said it had executed term sheets for restructuring its offshore debt and had received support from a number of major holders of its offshore notes.
The company said then that it would unveil the restructuring plan on Wednesday.
In January, China Evergrande's ( OTC:EGRNF ) auditor resigned and the company proposed payment plans to creditors.

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