Evergrande may submit restructuring plan

Evergrande Group and its two subsidiaries suspended their listing on the Hong Kong Stock Exchange on Monday.

The Chinese giant said that the listing is suspended pending the release of insider communications. Evergrande has not disclosed what they will be about. However, there are speculations in the Chinese media that the developer will present a restructuring plan. Its assumptions would be presented to investors later this week.

Over the weekend, Hengda, one of Evergrande’s group entities, agreed with creditors to postpone the payment of a coupon on a 4 billion yuan bond. This allowed it to avoid formal insolvency.

Evergrande Group was declared insolvent by credit rating agencies back in December last year. The company failed to pay coupons due to holders of its dollar-denominated bonds. It is now obligated to pay investors $2.1 billion. A series worth $1.5 billion will mature on April 11.

Source: https://www.bankier.pl/wiadomosc/Evergrande-zawiesza-notowania-gieldowe-8302206.html