What’s new: An overseas creditor filed suit in Hong Kong demanding the liquidation of China Evergrande Group as the indebted developer races to develop a restructuring plan for its $300 billion of liabilities.
The Samoan Islands-registered creditor, Top Shine Global Ltd. of Intershore Consult (Samoa) Ltd., filed the petition with Hong Kong’s high court to wind down China Evergrande, according to a release on the website of the Hong Kong judiciary. A preliminary hearing is scheduled for Aug. 31.
No details about the case and the creditor have been released.
The background: Evergrande last week reaffirmed that it is working on a debt restructuring plan and a preliminary proposal can be expected on schedule by the end of July, in line with a deadline announced in late January.
Evergrande owes $22.7 billion in offshore debts, including $19.4 billion of dollar bonds issued by itself and an overseas unit, as well as $3.3 billion of private financing, according to Xiao En, an Evergrande executive board member who is now in charge of the company’s daily operations.
It is likely that the company’s overseas bondholders will not receive their desired repayments as the company’s financial condition continues worsening, one offshore bondholder said. “Since the crisis broke out, the value of Evergrande’s assets has kept failing while its debt interest has kept rolling over every day,” the person said.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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