China Evergrande delays restructuring meeting amid financial concerns
ECONOMY & POLICY

China Evergrande delays restructuring meeting amid financial concerns

China Evergrande announced that it would postpone the scheme meeting originally scheduled for September 25 and 26. This decision comes as the troubled property developer deems it necessary to revaluate the terms of the proposed restructuring.

Back on March 22, Evergrande had revealed its plans to restructure its $22.7 billion offshore debt. However, the company reported that its sales have not met expectations since then.

In a filing, the company stated, "Considering the current circumstances and after consultations with its advisors and creditors, Evergrande believes it's imperative to reassess the terms of the proposed restructuring to align with the company's current situation and meet the demands of its creditors."

Evergrande requires approval from over 75% of the holders of each debt class to proceed with the plan, which offers creditors various options, including exchanging debt for new bonds and equity-linked instruments backed by its own shares and those of its Hong Kong-listed subsidiaries.

With total liabilities exceeding $300 billion, including offshore debt, Evergrande has been at the epicenter of a property debt crisis, with several Chinese developers defaulting over the past year, leading many to engage in debt restructuring negotiations.

In a separate development, authorities in southern China detained some personnel from Evergrande's wealth management unit, potentially signaling a new investigation that could compound the challenges facing the property giant.

China Evergrande announced that it would postpone the scheme meeting originally scheduled for September 25 and 26. This decision comes as the troubled property developer deems it necessary to revaluate the terms of the proposed restructuring. Back on March 22, Evergrande had revealed its plans to restructure its $22.7 billion offshore debt. However, the company reported that its sales have not met expectations since then. In a filing, the company stated, Considering the current circumstances and after consultations with its advisors and creditors, Evergrande believes it's imperative to reassess the terms of the proposed restructuring to align with the company's current situation and meet the demands of its creditors. Evergrande requires approval from over 75% of the holders of each debt class to proceed with the plan, which offers creditors various options, including exchanging debt for new bonds and equity-linked instruments backed by its own shares and those of its Hong Kong-listed subsidiaries. With total liabilities exceeding $300 billion, including offshore debt, Evergrande has been at the epicenter of a property debt crisis, with several Chinese developers defaulting over the past year, leading many to engage in debt restructuring negotiations. In a separate development, authorities in southern China detained some personnel from Evergrande's wealth management unit, potentially signaling a new investigation that could compound the challenges facing the property giant.

Next Story
Technology

BBMP Pledges Faster E-Khata Processing Amid Citizen Complaints

Facing mounting complaints over delays in e-khata issuance, the Bruhat Bengaluru Mahanagara Palike (BBMP) has promised to resolve the issue within 10 days. BBMP Chief Commissioner Tushar Giri Nath assured citizens that efforts are underway to expedite processing rates from the current 2,000 to a target of 10,000–15,000 applications daily. "We have cleared 90% of the 90,000 pending applications, leaving only 4,500 to process. To meet the demand, over 800 additional staff and assistant revenue officers (AROs) have been deployed to manage applications in each ward," Nath stated. Persistent Dela..

Next Story
Real Estate

Delhi HC Orders DDA to Assist CBI in Housing Lapses Probe

The Delhi High Court has instructed the Delhi Development Authority (DDA) to fully cooperate with the Central Bureau of Investigation (CBI) in its probe into alleged lapses in the construction of 336 high-rise HIG/MIG houses at Signature View Apartments, north Delhi. Justice Chandra Dhari Singh emphasized that DDA must furnish information about any internal inquiry and the officials involved to facilitate the investigation. The court noted CBI’s submission that DDA had not responded to multiple reminders since July, delaying the probe. The CBI is investigating allegations of "cheating, crimi..

Next Story
Infrastructure Urban

Mahindra Lifespace to Appeal Tamil Nadu GST Tax Demand

Mahindra Lifespace Developers Ltd has announced a tax demand of Rs 20.9 million imposed by the Tamil Nadu GST department, including interest and penalties. The order, issued by the Assistant Commissioner of State Tax, Chengalpattu, cites an alleged shortfall in GST payments under Section 74 of the GST Act, 2017. The realty firm refuted the allegations, stating, “Based on the company's assessment, there is no noncompliance, and a general penalty has been imposed.” The company plans to appeal the order, expressing confidence in a favorable resolution. Mahindra Lifespace assured stakeholders ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000