China Evergrande, one of the biggest real estate developers in China, is making efforts to restructure its debt for offshore bondholders. The company has proposed a new plan that involves offering to exchange their debts for approximately a 30% equity stake in two of its Hong Kong-listed subsidiaries. This move comes as Evergrande seeks to alleviate its financial burden and find a sustainable solution to its mounting debts.
By offering this debt-to-equity swap, Evergrande aims to reduce its overall indebtedness, while also providing bondholders with the potential for future returns through equity ownership. This restructuring plan may be seen as a way to reestablish investor confidence and avoid defaults, which could have severe consequences for the company and the broader real estate market in China. Overall, the proposed debt restructuring plan signals Evergrande’s commitment to address its financial challenges and find a viable path forward.
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