Overview

• China Evergrande Group, the world's most indebted property developer with over $300 billion in liabilities, is on the verge of liquidation unless a new restructuring plan is presented by Dec. 4th court hearing.
• Evergrande was declared in default late 2021, sparking a significant concern in China's property development industry and leading to form a 'risk management committee' by state officials to handle the restructuring.
• Evergrande's restructuring plan proposed in March suggests that bond investors receive new notes maturing in 10 to 12 years, or a combination of new debt and instruments linked to the shares of its property-services unit, its EV division, or the builder itself.
• Due to ongoing scandals involving its founder and setbacks including inability to meet regulatory qualifications to issue new bonds, Evergrande's restructuring efforts are in jeopardy, bringing up the possibility of liquidation.
• Evergrande's debt and ongoing crisis not only impact its internal structure and investors, but might also have significant consequences for China's economy and the global market due to its size and influence.
• Shares of Evergrande hit an all-time low of 18.8 Hong Kong cents (2.4 U.S. cents) after a judge delayed the court hearing to address a winding-up petition until December.