(Reuters) – China Evergrande said on Friday it would not be conducting the scheme meeting scheduled on Sept. 25 and Sept. 26 as the embattled property developer considers it necessary to reassess the terms of the proposed restructuring.
Evergrande on March 22 announced plans for the restructuring of its $22.7 billion in offshore debt. But since then, sales of the group has not been as expected by the company, it said.
“Based on the company’s current situation and consultations with its advisors and creditors, the company considers it necessary to reassess the terms of the proposed restructuring to meet the company’s objective situation and the demand of the creditors,” it said in a filing.
Evergrande needs approval from more than 75% of the holders of each debt class to approve the plan, which offers creditors a basket of options to swap debt for new bonds and equity-linked instruments backed by its stocks and those of its Hong Kong-listed units.
With more than $300 billion in total liabilities, including offshore debt, Evergrande has been at the centre of a property debt crisis, in which multiple Chinese developers defaulted over the past year, forcing many to enter debt restructuring talks.
Separately, on Sunday police in southern China detained some staff at Evergrande’s wealth management unit, suggesting a new investigation that could add to the property giant’s woes.
(Reporting by Echha Jain in Bengaluru; Editing by Shilpi Majumdar)
