China Evergrande Group’s offshore debt restructuring proposal, a test of investor sentiment towards the cash-squeezed property sector, failed to impress because of its long repayment period and lack of enough sweeteners, creditors and analysts said.
Evergrande (3333.HK) is the world’s most indebted developer with around $300 billion in liabilities. Its offshore debt restructuring, the country’s biggest such exercise, is aimed at saving it from a disorderly collapse.
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The developer has $22.7 billion of offshore debt, all of which is deemed to be in default. The plan provided two main options to its dollar bondholders to recoup their investments.
Creditors can either swap all of their holdings into new notes with maturities of 10 to 12 years, or convert them into different combinations of new notes with tenors of five to nine years and equity-linked instruments. (Reuters)
