China Evergrande expects continuing sales decline, hires advisers

Chicago, Sept. 16 – China Evergrande Group announced that it has engaged financial advisers, according to a media release.

The company said that it expects continuing decline in contract sales in September, in spite of September being the most active month typically for real estate companies in China.

The continuing deterioration is expected to place tremendous pressure on the group’s cashflow and liquidity.

Earlier in the week, S&P Global Ratings downgraded the group and its Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. to CC from CCC, as previously reported.

The board announced that the company has engaged Houlihan Lokey (China) Ltd. and Admiralty Harbour Capital Ltd. as joint financial advisers to the group to assess the group’s capital structure, evaluate the liquidity of the group and explore all feasible solutions to ease the current liquidity issue and “reach an optimal solution for all stakeholders as soon as possible.”

Offshore creditors can contact Houlihan Lokey (+852 3551 2300, Evergrande@HL.com) or Admiralty Harbour (+852 2110 1666, Evergrande@ahfghk.com).

China Evergrande is a real estate development company based in Guangzhou, China.

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