HONG KONG (Reuters) – A Hong Kong court will hold sanction hearings over whether to approve embattled Chinese property developer China Evergrande Group’s offshore debt restructuring plan on Sept. 5 and Sept. 6, the court ruled on Monday.
A convening hearing for Evergrande’s offshore debt restructuring plan was held in Hong Kong’s High Court on Monday. A separate hearing will also take place at a Cayman Islands court on Tuesday.
With total liabilities of $330 billion, Evergrande is the world’s most indebted property developer, and its default in late 2021 has led to a string of defaults and uncompleted homes across China.
It announced a debt restructuring plan in March, proposing to creditors a basket of options to swap their debt into new bonds and equity-linked instruments.
Evergrande last week posted a combined loss of $81 billion in 2021 and 2022 and a rise in total liabilities in its long-overdue financial results, raising questions about the viability of its restructuring plan and operations among investors.
(Reporting by Clare Jim; Writing by Xie Yu; Editing by Jamie Freed)
