Evergrande Group said it will take over residential and property projects of its new energy vehicle (NEV) unit in an effort to make the unit attractive to creditors’ for the offshore debt restructuring deal. Evergrande will buy the projects for an initial consideration of just RMB 2 ($0.29), taking over 47 of its health and living projects. The NEV unit is a key part of Evergrande’s restructuring plan announced last month. Under Evergrande’s restructuring options, offshore creditors are given an option to swap bonds for shares of some of its listed firms that include Evergrande NEV. The developer said that the transaction can help optimize the NEV unit’s structure and improve its valuation with an increased focus on the NEV business. It believes this would help make it attractive to investors and aid its fundraising efforts.

However, Leonard Law, a credit analyst at Lucror Analytics, said that the sale will not be of major help to the debt restructuring since it is only a transfer of some loss-making assets from one arm to another. As yet, Evergrande’s restructuring has only received the support of two groups of creditors, representing 20% of its existing bonds. This is considerably below the 75% threshold required to proceed with the turnaround.

Evergrande’s dollar bonds were trading steady at 7-10 cents on the dollar.

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