Evergrande misses proposal deadline
CHina evergrande Group delayed releasing a muchanticipated restructuring plan again, missing a self-imposed deadline and disappointing creditors seeking to salvage investments.
the world’s most indebted developer has yet to announce its offshore debt-restructuring plans, falling short on its promise to do so by the end of 2022. evergrande didn’t immediately respond to a request seeking comment during non-business hours.
With about 1.97 trillion yuan ($286 billion) of liabilities, the company is facing a winding-up lawsuit in Hong Kong, while sitting at the heart of a property crisis that’s triggered a flurry of defaults and caused home construction halts across the country.
evergrande’s fate has broader implications for china’s $58 trillion financial system, and could send ripples across banks, trusts and millions of home owners. it would likely be among the country’s biggest-ever restructuring efforts. the sheer size has left investors worried that any collapse may spark financial contagion and curb growth in the world’s second-largest economy, which depends on the housing market for about a quarter of gross domestic product.
the company previously failed to come up with a “preliminary restructuring plan” it promised by the end of July. it met with an adhoc group of its dollar bondholders in early December to formally discuss a proposal, Bloomberg reported earlier.
it expected to receive support from offshore creditors by the end of February or early March, the developer’s legal representative said during a winding-up hearing in late november. evergrande was urged by the judge of winding-up case to present “something more concrete” during the next hearing on March 20.