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Evergrande Seeks Patience From Global Investors on Repayment

Added 01-24-22 09:04:03pm EST - “(Bloomberg) -- China Evergrande Group urged offshore bondholders not to adopt aggressive legal action over repayments, after a group of its overseas creditors threatened to take enforcement measures.Most Read from BloombergStocks…” - News.yahoo.com

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Posted By TheNewsCommenter: From News.yahoo.com: “Evergrande Seeks Patience From Global Investors on Repayment”. Below is an excerpt from the article.

(Bloomberg) -- China Evergrande Group urged offshore bondholders not to adopt aggressive legal action over repayments, after a group of its overseas creditors threatened to take enforcement measures.

The developer is seeking more time from overseas investors to fully consider uncertainties and risks in order to make a debt risk disposal plan that will protect the interests of various parties, the company said in a statement. Evergrande is drafting a detailed and effective debt restructuring plan and actively maintaining dialogue with offshore creditors, it said.

An ad-hoc group of Evergrande’s offshore bondholders said last week that the Chinese developer failed to substantively engage with it about restructuring efforts, and will “seriously consider enforcement actions” to protect investor’s interests. The company’s offshore investors seek to be consulted before any further assets are sold, with the group saying Evergrande’s “lack of engagement and opaque decision-making to date is contrary to well-established international standards in restructuring processes of this magnitude.”

Evergrande’s bonds, while still showing deep levels of distress, have since rallied on signs of progress in its restructuring that’s being led by the Chinese government. Last week, Bloomberg reported that the developer has started to identify bondholders, and Evergrande said will hire more financial advisers. The Guangdong government plans to release a debt restructuring framework by March, REDD reported.

The developer’s note due 2022 is indicated at about 16.6 cents on the dollar Tuesday morning, Bloomberg-compiled prices show. Evergrande, saddled with $305 billion of liabilities as of mid-2021, was deemed to be in default in December after missing dollar-bond payments.

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