Evergrande offshore bondholders surprised by debt restructuring regulatory hurdles

The offshore bondholder group of China Evergrande Group stated on Monday that the property developer’s recent revelation that its offshore debt restructuring plan failed to meet regulatory criteria startled them.

The ad hoc bondholder organisation claimed in a statement that despite repeated demands, Evergrande has not provided any documentation or filings.

Evergrande did not immediately respond to Reuters’ request for comment.

Evergrande declared in late September that it would be unable to issue fresh debt due to an inquiry into its main unit, causing its offshore debt reorganisation plans to fall apart.

The ad hoc group said it was urging the Chinese property developer, the mostly heavily indebted in the world, to seek a resolution from regulators to allow the restructuring to proceed.

“This is the only way the cloud of uncertainty surrounding the regulatory issues can be resolved,” the statement said.

“Until then, the base case is that China Evergrande Group will be liquidated at the next winding up hearing on October 30, 2023.”

A Hong Kong court is due to hear a winding up petition against Evergrande on that day.