The offshore bondholders of China Evergrande Group (HK:3333) expressed their astonishment on Monday in response to the property developer’s recent announcement indicating a failure to meet regulatory prerequisites for its offshore debt restructuring plan.
In an official statement, the ad hoc bondholder group conveyed their surprise, underscoring that they had not received any pertinent documentation or filings from Evergrande despite making repeated requests for such information.
As of the time of reporting, Evergrande has yet to respond to Reuters’ request for a comment.
Late in September, Evergrande had disclosed that Chinese regulatory authorities had stipulated its inability to issue new debt owing to an ongoing investigation into its primary subsidiary, thereby throwing its offshore debt restructuring initiatives into disarray.
The ad hoc bondholder consortium is presently urging the Chinese real estate giant, known to be one of the world’s most indebted entities, to actively engage with regulatory bodies in pursuit of a resolution that would facilitate the progression of the restructuring plan.
In their statement, the group asserted, “This represents the sole viable means by which the cloud of uncertainty surrounding the regulatory matters can be effectively dispelled.”
“Until such a resolution materializes, the prevailing assumption is that China Evergrande Group will face liquidation during the upcoming winding-up hearing scheduled for October 30, 2023.”
