Header Ads

Header ADS

China Evergrande Group Will Propose Preliminary Restructuring Plan

Evergrande (03333) announced that it will strive to put forward a preliminary reorganization plan within 6 months. According to people familiar with the matter, in the preliminary reorganization plan drawn up by the Guangdong provincial government, Evergrande will split and sell Almost all assets other than (00708)  and Evergrande Property (06666) to resolve the debt crisis. These two businesses are left because Evergrande Chairman Xu Jiayin proposed in October last year that Evergrande's goal will be to transform from real estate to the new energy vehicle industry within 10 years.

State-owned enterprise China Cinda (01359) is one of Evergrande’s creditors. Therefore, China Cinda will be the lead entity responsible for the reorganization and sale of Evergrande’s real estate sector. The money from the sale of assets will be used as repayment for the creditors, but even through reorganization and sales, it is impossible to completely Pay off the debt, so the question now is how much of a discount the creditor will accept.
Powered by Blogger.