China Evergrande Group is set to get more detail on how many creditors support its offshore-debt restructuring plan, as a deadline arrives for bondholders to receive compensation if they back the effort.
(Bloomberg) — China Evergrande Group is set to get more detail on how many creditors support its offshore-debt restructuring plan, as a deadline arrives for bondholders to receive compensation if they back the effort.
Creditors of the world’s most indebted developer have until 5 p.m. Thursday in Hong Kong to execute or accede to a so-called restructuring support agreement, in order to get a 0.25% consent fee.
While Evergrande hasn’t said if it would issue any public information on the outcome, some fellow defaulted builders have provided updates no more than a day after a consent fee deadline.
The company disclosed earlier this month that holders of more than 20% and 35% of outstanding dollar bonds respectively issued by Evergrande and unit Scenery Journey Ltd. backed the debt offers. Those investors included Redwood Capital Management and Saba Capital Management, according to people with knowledge of the matter.
Evergrande eventually needs to secure support from 75% of creditors in value to implement its debt restructuring, one of China’s biggest ever, through so-called schemes of arrangement. But some investors and analysts have expressed doubts about proposed recoveries.Â
Meanwhile, law firm White & Case LLP earlier this month invited creditors to form committees that among other things would seek more time to consider Evergrande’s offers. The company’s dollar-bond prices have fallen since last month’s long-awaited plan release, at a time China’s high-yield debt market has also weakened.
Two other defaulted developers, Sunac China Holdings Ltd. and Fantasia Holdings Group Co., both said within the past week that holders of more than 70% of eligible offshore debt have acceded to the firms’ restructuring support agreements. The builders have extended the time for remaining creditors to do the same and receive a consent fee.
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