Debt-strapped China Evergrande Group promises to present restructuring plan by July
Published: Mar 22, 2022 11:59 PM
Evergrande Group Photo: VCG

Evergrande Group Photo: VCG

China Evergrande Group promised on Tuesday it will come up with a restructuring plan in about four months, as the embattled Chinese property giant offered a detailed explanation to its investors in China and abroad on how it plans to deal with its mounting debt.

During a call conference with several executives of the company, Chen Yong, a member of the company's recently organized Risk Management Committee, said that the company's work is proceeding toward its targeted goals, and the firm is striving to present a restructuring plan by the end of July. 

The company's overseas liabilities currently amount to about $22.7 billion and it is now organizing intermediary teams to further sort out relevant data, the company's executive director, Xiao En, disclosed during the conference. 

According to Xiao, China Evergrande is going to full lengths to push work resumption to guarantee the delivery of property units, a move the company said is aimed at safeguarding the legitimate rights of house buyers and creditors. 

Data provided by Xiao showed that the company delivered 37,899 property units last December, and more than 80 percent of its projects had resumed construction by the end of February. 

Xiao also disclosed that the company is actively reaching out to third-party sponsors to channel in strategic investment for the restructuring of its overseas listed subsidiaries, the Evergrande Property Services Group and the China Evergrande New Energy Vehicle Group. 

China Evergrande updated its investors on its debt payment plans after the company experienced a wave of defaults in recent months, which not only rattled global investors, but also cast a shadow on China's overall property market. As Reuters reported, nearly $20 billion of the company's international bonds are now deemed to be in default.

According to Xiao, the company got in touch with about 89 overseas institutional creditors and certain individual investors as of February 22 to exchange opinions. He also said that the company's onshore liabilities are generally stable. 

The company said earlier on Tuesday that it would not be able to publish financial results for 2021 by March 31 because audit work has not been completed. 

The Chairman of China Evergrande Group, Xu Jiayin, did not attend the conference.