Evergrande will present a debt restructuring proposal to creditors by the end of July, the Chinese company said on Tuesday, after concerns over the group’s financial health were renewed by a delay in publishing annual results. .
Evergrande, whose debt to international creditors of $22.7 billion is considered to be in default, is looking to “further improve communications” with creditors to meet its end-July target, said the company’s chief executive Siu Shawn. to investors in a conference call.
Earlier on Tuesday, Evergrande announced that it would not meet the March 31 deadline to present its 2021 financial results because the audit work had not been completed.
The world’s most indebted real estate developer told investors in January that it intended to have a preliminary restructuring proposal within six months.
A wave of defaults in China’s real estate sector has rattled investors, and while the state intervention has eased market concerns about a disorderly collapse of Evergrande, lenders still don’t know if they’ll get their money back.
Evergrande, once China’s leading sales developer and now with more than $300 billion in liabilities, missed some bond payments abroad in December and has struggled to settle commitments to suppliers and creditors, as well as completing projects.
The developer created a risk management committee in December composed mainly of members from state-owned companies, as the Guangdong provincial government is leading the restructuring.
Source: CNN Brasil
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