China Evergrande’s offshore debt restructuring Plan moves forward

China Evergrande’s offshore debt restructuring Plan moves forward

A group of major offshore bondholders and Bloomberg -- China Evergrande GroupEvergrande Group took a key step forward on what would eventually be one of the nation's biggest-ever restructurings. More negotiations and key dates are still looming.

A group of dollar-bondholders helped the world s most indebted developer gain support for its offshore debt restructuring plan, details of which it has also released after months of delays, according to a group of dollar-bondholders.

There are no shortage of more hurdles remaining, and Evergrande and the Ad-hoc group still need to finalize the exact language of the so-called restructuring support agreements that would officially set the pact. The firm expects to sign such agreements by March 31.

After that, the focus will shift to winning over an even broader group of creditors. Evergrande expects to implement its debt restructuring through so-called schemes of arrangement in the Cayman Islands, Hong Kong and other jurisdictions. For debt overhauls to proceed, approval of at least 75% of creditors in value is required under such court-overseen processes.

Neil McDonald, a partner at Kirkland Ellis LLP, said that the legal adviser to the ad-hoc group is going to be the next part of our job. There will be a big process as we go through this. Following is a timeline of upcoming events and procedural targets based on a Hong Kong court hearing Monday and the firm s exchange filing Wednesday that unveiled the debt-restructuring proposal:

A successful debt restructuring is key to the builder's efforts to push back an investor's petition to wind up the firm. The case sacrament or dismissal is one thing that needs to happen for a halt to trading of Evergrande and two of its units shares to end, according to Hong Kong's stock exchange.

The shares haven't traded since March. Exchange rules say a firm's listing can be canceled once halts reach 18 months long.

A resumption of trading would give creditors better insight into the value of Evergrande and its two listed units. The trio's shares had a combined market value of HK $81 billion $10 billion when they were stopped.

The past year, China's property crisis worsened, with new home sales falling and dollar bond defaults soaring to records. Evergrande warned its electric-vehicle unit might need to shut down if it doesn't have new funding.

The release of the 2021 results was held back by Evergrande Property Services Group Ltd., which disclosed 13.4 billion yuan $2 billion of its deposits as security for pledge guarantees and seized by banks. The findings of a probe were released last month, and China Evergrande reiterated in Wednesday s filing that both firms are discussing a repayment proposal.

There is no ChatGPT Advances Are Moving so Fast Regulators Can't Keep Up With It.