The company logo is seen at the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Song

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HONG KONG, Jan 26 (Reuters) – China Evergrande Group (3333.HK) and its financial advisers will hold a call with investors at 9:00 p.m. (1300 GMT) on Wednesday, sources said, the first such call since it defaults on a dollar. bond payments last month.

Evergrande, once China’s top-selling property developer, has more than $300 billion in debt, including nearly $20 billion in international bonds, all considered to be in default.

Its debt crisis has engulfed other Chinese developers and rattled global financial markets over the past year, and contributed to a sharp slump in China’s property market. Read more

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The company’s new chief executive, Siu Shawn, who is also chairman of Evergrande New Energy Vehicle Group Limited (0708.HK), and a member of property developer Chen Yong’s risk management committee, will join the call. , the sources said. on condition of anonymity.

Chen is chief compliance officer of state-owned Guosen Securities. Andrew Huang, general manager of Evergrande’s Hong Kong branch, will also be on the call.

Evergrande set up the risk management committee in December with mostly members from state-owned enterprises, as the Guangdong provincial government leads the company’s restructuring work.

The embattled firm on Monday asked its offshore bondholders for more time to work on a “comprehensive” and “effective” debt restructuring plan, after a group of offshore Evergrande creditors said that he was prepared to take “all necessary measures” to defend their rights if the company did not show more urgency to resolve a defect. Read more

Evergrande also asked bondholders to disclose their holdings by the middle of this week to identify investors for communications, and hired more financial and legal advisers to follow up on creditor inquiries. Read more

Shares of Evergrande closed 1.7% higher on Wednesday, while its defaulted dollar bond due April 2022 fell to 15.997 cents on the dollar from 17.074 overnight, according to data from Duration Finance.

Ratings agency Moody’s said in a report on Wednesday that covenant sets in Evergrande’s offshore issuances had become increasingly lax, easing or eliminating key protections and jeopardizing bondholders’ prospects for recovery. offshore bonds.

Offshore bondholders rank behind creditors of Evergrande’s more than 1,950 onshore subsidiaries, Moody’s added, and none of them guarantee the offshore bonds.

The agency said weakening covenants and increasing the size of debt exclusions allowed the company to significantly increase its leverage.

“Flexible covenants have left Evergrande and other Chinese property developers with a negative and lower B3 corporate family rating vulnerable to the highly cyclical nature of the Chinese property market,” said Jake Avayou, vice president and senior manager. Moody’s clauses in the report. .

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Reporting by Clare Jim in Hong Kong and Jason Xue in Shanghai; Editing by Clarence Fernandez and Kim Coghill

Our standards: The Thomson Reuters Trust Principles.

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