China Evergrande Group is revising the terms of its proposed restructuring plan and canceled so-called scheme sanction hearings, it said in a filing, adding further uncertainty to what would be one of the nation’s biggest ever restructurings.
(Bloomberg) — China Evergrande Group is revising the terms of its proposed restructuring plan and canceled so-called scheme sanction hearings, it said in a filing, adding further uncertainty to what would be one of the nation’s biggest ever restructurings.
The distressed developer cited its “current situation and consultations with its advisors and creditors” in a filing to the Hong Kong Stock Exchange on Friday. The group is taking the steps “to meet the company’s objective situation and the demand of the creditors,” it said. No details on the proposed revisions to the restructuring plan were given.
The development adds to Evergrande’s increasingly uncertain fate, after the company said late last month that founder Hui Ka Yan has been suspected of committing crimes and placed under police control. The world’s most indebted developer with liabilities exceeding $300 billion will face an Oct. 30 court hearing in Hong Kong of a petition to wind up the firm, which could lay bare the once-unthinkable possibility of liquidating its assets.
Such an outcome would wreak havoc on the struggling company that’s trying to finalize a restructuring plan to pay back creditors.
Evergrande, the poster child of China’s real estate debt crisis with about $327 billion of liabilities, comes to the hearing when more liquidations have been ordered.
The latest development also expands a growing list of distressed Chinese companies, including Evergrande’s industry peer Country Garden Holdings Co., that have faced criticism of weak governance and disclosure practices that are putting investors off the country’s borrowers longer-term.
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