![]() In late 2021, Evergrande was declared by Fitch Ratings as defaulting on its US dollar bonds, which roiled financial markets and sparked fears about contagion. But it had borrowed so heavily that when China cracked down on leverage in the property sector in 2020, it failed to raise enough cash to repay creditors and suppliers. Gilles Sabrie/Bloomberg/Getty ImagesĮvergrande wants to build electric cars, not homesĮvergrande was once China’s largest developer by sales. The China Evergrande Group logo displayed atop the company's headquarters in Shenzhen, China, on Thursday, Sept. ![]() If the unit can obtain over 29 billion yuan in financing, it plans to launch a number of flagship models and achieve mass production. The company also warned its electric vehicle (EV) unit would face the risk of shutdown without new funding. That will require additional financing of 250 billion to 300 billion yuan ($36.4 billion to $43.7 billion) to resume work and ensure delivery of properties. They can swap their holdings into new notes with a 10 to 12 year maturity or convert them into different combinations of new notes with a five to nine year maturity and equity-linked instruments.Įvergrande said it will focus on returning to normal operations in the next three years. The company offered two main options for its international creditors. “The proposed restructuring will alleviate the company’s pressure of offshore indebtedness and facilitate the company’s efforts to resume operations and resolve issues on shore,” Evergrande said in the filing. That means most of the company’s international creditors have agreed on the deal. They account for 84% of the company’s offshore debt, which is $22.7 billion. These bondholders hold $19.15 billion of US dollar-denominated notes that Evergrande had previously issued. This Chinese billionaire has lost over 90% of his fortune Evergrande reported core profit for the full year that beat the highest analyst estimate. Hui Ka Yan, chairman of China Evergrande Group, pauses during a news conference in Hong Kong, China, on Tuesday, March 26, 2019.
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