A person familiar with the matter revealed that the China Real Estate Enterprise Evergrande Group, which has fallen into a debt crisis, has reached a debt restructuring agreement with overseas bond holders.
According to the Wall Street Journal on Friday (March 17), people familiar with the matter reported that Evergrande Group had reached a consensus on a trading outline with the bond holder.The transaction will extend Evergrande's debt expiration date, and at the same time allow the payment of some bills to provide opportunities for breathing for Evergrande.
People familiar with the matter also said that bond holders also agreed to reduce their holdings of bonds, which means that the funds they obtain will be lower than the face value of the bonds, but the scale of reducing its holdings has not been decided.Evergrande will not repay the creditors immediately, but will replace their bonds with several newly issued bonds, including bonds guaranteed by its Hong Kong listed company stocks, including real estate service departments and electric vehicle departments.
The creditor will also get a new unpaid bond. The longest period of the future is 12 years, and the maximum rate of ticket rates can reach 9%.People familiar with the matter said that Evergrande can issue more bonds to creditors instead of paying these interest votes, which means that Evergrande will not immediately bear the burden on paying interest after the transaction is signed.
Evergrande's first US dollar bond defaults in 2021, and a large number of real estate was unable to deliver a thunderbolt. In the last year, buyers who spread to all parts of China stopped loan storms, exacerbating China's real estate crisis.At present, Evergrande has more than $ 16 billion (approximately $ 21.4 billion) unpaid US dollar bonds.
In the past two years, China's real estate industry has faced dozens of US dollar bond defaults after the sales of sales.According to the S & P global rating, Chinese real estate companies missed more than $ 30 billion in international bond payment in 2022.Investors believe that Evergrande's debt restructuring may set a template for the debt solution of other real estate companies.
It is reported that the progress of Evergrande's debt restructuring negotiations has made progress, which has reduced the pressure of Evergrande's hearing before the Hong Kong court on March 20.Some progress made in negotiations.
