China Evergrande reports expiration of RSAs; no extensions

By William Gullotti

Buffalo, N.Y., Dec. 15 – China Evergrande Group announced on Friday that the three term sheets that resulted from discussions with stakeholders regarding the proposed restructuring of its offshore debt expired on Dec. 15, without extension.

The schemes and related term sheets, entered March 22 and April 3, related to 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 RSAs were signed prior to Evergrande’s disclosure regarding subsidiary Hengda Real Estate Group Co., Ltd.’s pending material lawsuits for failure to repay debt, multiple postponed and subsequently canceled scheme meetings, bankruptcy filing in the United States and the High Court of Hong Kong holding winding-up petition hearings.

Friday’s notice stated that the company and its advisers will continue to engage in discussions with various stakeholders to reach agreeable terms on the “holistic restructuring of the offshore debts of the company.”

The real estate development company is based in Shenzhen, China. The company filed Chapter 15 bankruptcy on Aug. 17 in the U.S. Bankruptcy Court for the Southern District of New York. The case number is 23-11332.

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