Evergrande has set a target of end-July 2022 to reveal its debt restructuring proposal to creditors. Executive Director Siu Shawn said that the developer was seeking to “further enhance communications” with creditors to reach the end-July target. The Guangdong provincial government is leading the restructuring effort. As part of its asset sales and effortsv to pay some of its offshore debt, Evergrande has been working to sell its Yuen Long land plot in Hong Kong and its Evergrande Centre commercial building, among other asset sales efforts.
In related news, sources note that Evergrande planned to return land used as collateral for an RMB 3.25bn ($510mn) trust loan to the Guangzhou government. The trust loan was issued by CITIC Trust and the land is expected be put up for sale by the government. Sources believe that if the above plan works, then this model of the local government and creditors working together can be replicated across other trust loans.
Separately, Evergrande released and exchange filing saying that lenders to its property services unit have claimed more than RMB 13.4bn ($2.2bn) of its deposits used as security for third party guarantees. It considers this a “major incident” and has set up an independent committee investigation into it. The development comes just a day after Evergrande said that it will not be able to publish its 2021 annual results by end-March.
Its dollar bonds were trading flat at ~13 cents on the dollar.