China Evergrande has reportedly approached its offshore creditors for support to oppose a winding up petition filed against them in Hong Kong by Top Shine Global. According to Reuters, the Chinese developer intends to submit the backing of creditors as part of evidence to the court ahead of the first hearing on August 31. While Evergrande had previously mentioned that the lawsuit will not affect its offshore restructuring plans, a successful outcome of the petition could throw a wrench in the works and reduce the value of its assets, against the interests of its offshore creditors. Reuters notes that an out-of-court settlement with Top Shine is still off the table at the moment. Separately, their restructuring plans are coming together and the developer aims to agree on restructuring terms with its creditors by the end of 2022.

Evergrande’s bonds are trading flat at levels of 8-9 cents to the dollar.

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