China Evergrande’s creditors sold the developer’s Hong Kong undeveloped land plot for $637mn, incurring $770mn loss compared to its purchase price. The plot was used as security for a $520mn financing transaction and was seized by Oaktree Capital after Evergrande defaulted on a loan against which Oaktree had the plot as security. Proceeds will be used to repay financial obligations related to the project. Apart from the plot of land, Evergrande’s creditors have also been seeking to sell its Hong Kong headquarters building with sources noting that lenders appointed a receiver to seize the property. However, no major updates are out regarding the sale of the building.
Evergrande’s dollar bonds were stable at deeply distressed levels of 4 cents on the dollar.
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