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HONG KONG (Reuters) -China Evergrande Group said on Friday it will arrange asset packages that may include equity in its two offshore listed units as a sweetener for restructured offshore debt.
The two listed units are Evergrande Property Services Group Ltd and electric vehicle maker China Evergrande New Energy Vehicle Group Ltd.
Evergrande said in a long-awaited update on its preliminary offshore restructuring proposal that it expected due diligence work on the group to be completed in the near future, and it aims to achieve further progress and announce a specific offshore restructuring plan within 2022.
The world’s most indebted property developer’s entire $22.7 billion worth of offshore debt including loans and private bonds is deemed to be in default after missing payment obligations late last year.
The developer began talks with offshore creditors about the restructuring proposal earlier this year, after advisers for a group of offshore bondholders demanded more transparency from the developer.
Evergrande said on Friday the due diligence process remains ongoing, given the group’s size and complexity and the “dynamics the group finds itself in”.
It expected it would take a relatively long time for the business to restore orderly operations and asset value for all stakeholders, due to the real estate markets in China and the overall size of the company’s assets and liabilities.
