Evergrande shares rise despite mounting uncertainty over debt revamp plan

HONG KONG (Reuters) -China Evergrande Group’s shares rose nearly 4% in early trading on Wednesday after their sharp recent declines.

The rise came despite growing uncertainty about the cash-strapped developer after Reuters reported that some of its offshore creditors were planning to join a liquidation court petition filed against the company if it does not submit a new debt revamp plan by end of next month.

Evergrande’s Hong Kong-listed shares opened down 3.8% at HK$0.38, but reversed losses and were up nearly 4% in early trade.

The stock is still off nearly 25% since Monday after Evergrande said a day earlier it could not issue new bonds as part of its debt restructuring plans because of a regulatory investigation into its main Chinese unit.

The unit, Hengda Real Estate, then said on Monday it had failed to pay the principal and interest for a 4 billion yuan ($547 million) bond due by Sept. 25.

(Reporting by Scott Murdoch in Sydney and Anne Marie Roantree in Hong Kong; Editing by Himani Sarkar and Muralikumar Anantharaman)