China’s Evergrande (OTC:EGRNF) (OTC:EGRNY), a debt-laden property developer has told offshore creditors that it plans to present a restructuring proposal as soon as the first week of December, Bloomberg News reported on Thursday (Nov 24).
The proposal could include swapping debt for shares in the company’s Hong Kong-listed auto and property management units, the report said, citing unnamed sources.
The group of creditors asked Chairman Hui Ka Yan to infuse at least $2 billion of his personal wealth into Evergrande as a condition for agreeing on any proposals from the company, it added.
The company aims to start negotiating restructuring terms next month and is combing through onshore assets to offer as additional credit enhancement to holders of its U.S. dollar-denominated bonds.
The Chinese property developer has been struggling with over $300B of debt that has spread across the country’s economy as the company’s suppliers now deal with the aftermath.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)