SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

China Evergrande said that it made a 10% repayment on its wealth management products (WMPs) due September 30, as per Reuters. However, the company remained silent on its offshore dollar bond coupons that were due on September 23 and 29. “I can’t see there being much willingness to give a fairer outcome to offshore bondholders rather than onshore banks, let alone house buyers and people who have lent onshore through the personal loan structures,” said Alexander Aitken, a partner at Herbert Smith Freehills. Legally also, offshore bondholders are structurally subordinated where creditors to its onshore subsidiaries get paid before lender to the parent or any its offshore debt issuers.

Evergrande’s dollar bonds were trading weak with its 7.5% 2023s down 0.6 to 24.38.

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