China Evergrande, ad hoc group enter term sheets for restructuring

By Marisa Wong

Los Angeles, March 22 – China Evergrande Group and its advisers have in the past few months engaged in constructive dialogue with various stakeholders on the proposed restructuring of its offshore debt, according to a company update on Wednesday.

Progress has been made with a number of major holders of the dollar-denominated senior secured notes in the aggregate principal amount of $13,922,500,000 issued by China Evergrande and the dollar-denominated senior notes in the aggregate principal amount of $5,226,000,000 issued by Scenery Journey Ltd. and guaranteed by, among others, Tianji Holding Ltd., the company reported.

The company said these discussions have culminated in binding agreements with members of an ad hoc committee of holders of the existing notes on the key terms of the proposed restructuring.

Three binding term sheets were executed on March 20.

The proposed restructuring is expected to be implemented through schemes of arrangement or other arrangements in the Cayman Islands, Hong Kong and the British Virgin Islands or other applicable jurisdictions.

The restructuring effective date is anticipated to be Oct. 1, 2023, and the longstop date is expected to be Dec. 15, 2023.

The company said it expects to enter into one or more restructuring support agreements with the ad hoc group holding the existing China Evergrande or Scenery Journey notes, as applicable, by no later than March 31.

The real estate development company is based in Shenzhen, China.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.