Chinese developer Evergrande Group is close to making a debt-restructuring deal with foreign bind investors.
According to sources, the Guangzhou-based property developer has agreed on the outlines of an agreement that would extend its debt maturities while allowing it to defer some coupon payments.
- Evergrande is the most indebted property company in the world, with more than $300B in debts.
- The company defaulted on its U.S. dollar bonds in 2021.
- Chinese real-estate firms defaulted on more than $30B of international bonds in 2022.
- According
to sources, investors have agreed to take a small cut on some of the
bonds Evergrande holds, meaning they would get less than the face value
of the bonds.
- The amount of the cut has not been decided.
- Evergrande
is due in court in Hong Kong on March 20, where the company is expected
to show it has made some progress in its negotiations with bondholders.
