EVGPF - China Evergrande unveils restructuring plan for offshore notes

2023-03-22 12:01:55 ET

China Evergrande ( OTC:EGRNF ) ( OTC:EGRNY ) said Wednesday it has reached binding agreements with an ad hoc committee of holders of its existing U.S. dollar denominated notes that give creditors a range of options in exchanging their existing notes for new securities.

The group represents a number of major holders of its $13.9B of existing notes and $5.23B of notes issued by its Scenery Journey subsidiary, the company said.

Holders of the parent's existing offshore notes have two options, the company said in a Hong Kong filing . They can exchange their notes at one-to-one conversion ratio for new notes with a tenor of 10 to 12 years and will be repaid over time. The second option allows creditors to elect: (1) new notes with a tenor of five to none years; (2) a package of five equity-linked instruments in Evergrande Property Services ( OTC:EVGPY ) ( OTC:EVGPF ), Evergrande New Energy Vehicle Group ( OTC:EVGRF ), or the comapany; or (3) a combination of the two.

As part of the Scenery Journey plan, creditor will receive five tranches of new notes with tenors of four to eight years in a total amount equal to $6.5B.

Under a plan between the company's Tianji subsidiaries and existing Scenery Journey notes, creditors will get four tranches of new notes with tenors of five to eight years in a total amount equal to $800M.

Earlier, Reuters reported that the plan would include a range of options for creditors

For further details see: