Overview

• A key offshore creditor group of China Evergrande Group supports keeping the developer operating, opposing a bankruptcy process that could detract from the common goals of ensuring the prompt completion of projects and the timely delivery of homes.
• The group, which owns about US$2 billion in offshore notes guaranteed by Evergrande, issued a statement urging that Hengda Real Estate, Evergrande’s flagship onshore unit, be allowed to maintain operations.
• Evergrande has until a Hong Kong court hearing on Monday to present a 'concrete' revised debt restructuring proposal for offshore creditors.
• Evergrande offered to swap some offshore debt into equity in the company and two Hong Kong-listed units, and repay the rest with non-tradeable 'certificates' backed by offshore assets.
• The creditors group responded by demanding a controlling equity stake in Evergrande and the two Hong Kong subsidiaries.