Evergrande Postpones Debt Restructuring Decision to October, Giving More Time for Creditors to Review New Proposal

Evergrande delays decision on restructuring offshore debt to October
Gives more time for Hong Kong debt holders to consider fresh restructuring plan
Meetings postponed from September 26 to October 16-17
Evergrande at center of China property sector crisis with debt defaults
Needs approval from over 75% of holders of each debt class for restructuring plan

reuters.com

Relevant topic timeline:

8/18/2023

China's property giant Evergrande files for bankruptcy protection in Manhattan court

Main topic: Evergrande Group, a heavily indebted property giant in China, has filed for Chapter 15 bankruptcy protection in a U.S. court. Key points: 1. Evergrande defaulted in 2021 and announced an offshore debt restructuring program in March 2022. 2. The Chapter 15 bankruptcy protection allows a U.S. court to intervene in cross-border insolvency cases involving foreign companies undergoing restructuring. 3. China's real estate sector, which accounts for a significant portion of the country's GDP, has been facing challenges, and Evergrande's bankruptcy filing adds to investor concerns.

8/19/2023

China's Evergrande struggling to avoid defaulting on $340 billion debt

### Summary Chinese property giant Evergrande is seeking approval from a US court for a debt restructuring plan for foreign bondholders and denies reports that it has filed for bankruptcy. ### Facts - 💰 Evergrande, which is struggling with $340 billion in debt, is asking a US court to approve a restructuring plan for its foreign bondholders. - ❌ The company denies news reports suggesting that it has filed for bankruptcy and clarifies that its request under Chapter 15 of the US bankruptcy code is a normal step in the overseas restructuring procedure. - 📝 Evergrande negotiated a restructuring agreement with investors in its US dollar-denominated bonds under the legal systems of Hong Kong and the British Virgin Islands but needs approval from a bankruptcy court in New York City due to New York state law. - 💸 The company faced a cash shortage after Chinese authorities tightened controls on corporate debt in 2020. Other property developers collapsed, leaving unfinished apartment buildings. - 🏠 Evergrande claims to have more assets than debt but struggles to convert slow-selling real estate into cash for repayment of creditors. - 🇨🇳 The Chinese government has sought to reassure investors that Evergrande's problems are contained and that lending markets will continue to function.

9/22/2023

Evergrande Cancels Key Creditor Meetings Again, Citing Lower Sales and Need to Rethink Restructuring Terms

China Evergrande Group has canceled upcoming creditor meetings and stated it needs to reassess its proposed restructuring, leading to more uncertainty surrounding one of China's largest ever restructurings.

9/24/2023

China's Evergrande blocked from issuing new debt amid debt crisis, adding uncertainty to restructuring efforts

China Evergrande Group, a distressed property group, is unable to issue new debt due to an ongoing probe into its key subsidiary Hengda Real Estate Group, further complicating its efforts to restructure offshore debt.

9/25/2023

Evergrande Shares Sink as Debt Restructuring Plan Stalls Due to Creditor Resistance and Regulatory Probe

China Evergrande Group's shares and those of its peers plunged after the troubled property developer faced difficulties in finalizing its debt restructuring plan, causing concerns to resurface about the crisis-hit Chinese property sector.

9/25/2023

Evergrande Restructuring Hits Major Snag as Probe into Main Unit Stalls Debt Swap

Evergrande, the embattled Chinese developer, is facing trouble with its debt restructuring plan due to a regulatory probe into its subsidiary, Hengda Real Estate Group, which could lead to liquidation if a new deal with creditors cannot be reached.

9/28/2023

Evergrande Shares Suspended as Chairman Reportedly Placed Under Surveillance Amid Ongoing Debt Crisis

Shares of China Evergrande Group were suspended on Thursday by Hong Kong's exchange, as the chairman of the embattled real estate developer is reportedly under surveillance.

Topics

Posted 9/9/2023, 1:45:33 AM

Evergrande Postpones Debt Restructuring Decision to October, Giving More Time for Creditors to Review New Proposal

Evergrande delays decision on restructuring offshore debt to October
Gives more time for Hong Kong debt holders to consider fresh restructuring plan
Meetings postponed from September 26 to October 16-17
Evergrande at center of China property sector crisis with debt defaults
Needs approval from over 75% of holders of each debt class for restructuring plan

reuters.com

Relevant topic timeline:

8/18/2023

China's property giant Evergrande files for bankruptcy protection in Manhattan court

8/19/2023

China's Evergrande struggling to avoid defaulting on $340 billion debt

9/22/2023

Evergrande Cancels Key Creditor Meetings Again, Citing Lower Sales and Need to Rethink Restructuring Terms

9/24/2023

China's Evergrande blocked from issuing new debt amid debt crisis, adding uncertainty to restructuring efforts

9/25/2023

Evergrande Shares Sink as Debt Restructuring Plan Stalls Due to Creditor Resistance and Regulatory Probe

9/25/2023

Evergrande Restructuring Hits Major Snag as Probe into Main Unit Stalls Debt Swap

9/28/2023

Evergrande Shares Suspended as Chairman Reportedly Placed Under Surveillance Amid Ongoing Debt Crisis

Shares of China Evergrande Group were suspended on Thursday by Hong Kong's exchange, as the chairman of the embattled real estate developer is reportedly under surveillance.