[Hong Kong 27th Archyde.com]–Chinese real estate development giant China Hengda Group, which is in financial difficulty, pays in cash installments and is listed on the Hong Kong market for foreign currency-denominated debt worth regarding $ 19 billion. We are considering a management restructuring plan to repay by “debt equity conversion” (dead equity swap) to be transferred to the company’s stock. Two people involved revealed.
China’s Evergrande’s total of $ 22.7 billion worth of foreign debt (including loans and corporate bonds for individuals) failed to meet its payment obligations late last year and is considered default. Evergrande of China announced in March this year that it would announce a provisional debt restructuring plan by the end of July. This reconstruction plan is subject to change at an early stage.
As part of this proposal, China Evergrande is considering repaying foreign creditors by converting their principal and interest into new bonds, according to one person familiar with the matter. New bonds will be repaid in installments over a period of 7 to 10 years.
According to two people concerned, part of the debt will be exchanged for the shares of Evergrande Property Group, a real estate service industry listed on the Hong Kong market, and Evergrande New Energy Automobile Group, a Chinese electric vehicle company. Also enable.
Up to 20% of foreign debt will be exchangeable for the shares of these two companies, according to the first source.
