Law firm White & Case LLP is calling on investors who hold China Evergrande Group’s offshore debt affected by the developer’s restructuring proposal to form a creditor group.
(Bloomberg) — Law firm White & Case LLP is calling on investors who hold China Evergrande Group’s offshore debt affected by the developer’s restructuring proposal to form a creditor group.
Note-holders and lenders are invited to join a Friday call to “discuss their options before they consider signing” the restructuring support agreement, the law firm said in a statement dated Monday.
Evergrande, the world’s most indebted developer, released a long-awaited debt restructuring proposal in March that’s meant to be a cornerstone in its overhaul plan. While members of an ad-hoc group of investors have signed the agreement, White & Case’s attempt to rally others indicate there will be more negotiations ahead.
White & Case is seeking “class C” investors holding Evergrande’s offshore debt including guarantees and put options, as well as creditors under the Tianji Holding Ltd. scheme, according to the statement. Members of the existing ad-hoc group or creditors who have signed the agreement won’t be eligible, it said.
April Deadline
The law firm had previously advised investors holding bonds issued by Jumbo Fortune Enterprises, a joint venture whose owners include Hengda Real Estate Group, an Evergrande unit.
Evergrande’s offshore debt restructuring plan, delivered 15 months after its first public dollar bond default, allows creditors to receive new notes or a combination of new debt and instruments tied to shares of subsidiaries.
Creditors will receive a consent fee for 0.25% of outstanding principal of the respective debts if they agree to the proposal by 5 p.m. Hong Kong time on April 27, according to a filing by the developer.
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