EVGPF - Evergrande Property Services sees working capital sufficient through mid-2024

2023-06-06 07:42:42 ET

Evergrande Property Services ( OTC:EVGPY ) ( OTC:EVGPF ) management said it expects the company will have enough working capital to meet its financial obligations through June 30, 2024, according to a filing made on Tuesday.

As part of that opinion, the company is in talks with China Evergrande Group ( OTC:EGRNF ) ( OTC:EGRNY ) about a proposal to repay funds involved in deposit certificate pledge guarantees of ~RMB 13.4B.

Evergrande Property ( OTC:EVGPY ) said that case is a "special case" and certain measures relating to the internal control system of the group will be implemented. "The case will not have further significant impact on the Group's future operating cash flow," it said.

In addition, the company has reached agreements with certain creditors that allows it to extend repayment terms from one year to four years. Evergrande Property directors consider further extensions may be obtained if needed.

Cost controls in administrative and other expenses are continuing by further streamlining the group's operations, the company added .

In March, China Evergrande ( OTC:EGRNF ), the property developer saddled with more than $300B in liabilities, reached agreements with a majority of offshore holders of $13.9B of existing notes that give creditors a range of options in exchanging them for new securities.

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