Evergrande Braces for Debt Restructuring

China Evergrande Group had signaled that it is already planning to negotiate a debt restructuring with offshore creditors as it faces another potential default on Monday.

Evergrande said in a filing on Friday that it plans to “actively engage with offshore creditors to formulate a viable restructuring plan” for its impending bond interest dues.

The embattled property giant acknowledged in its statement that it can no longer guarantee its ability to settle $300 billion in local and overseas debt.

A 30-day grace period ends on Monday for a $41.9 million coupon for a note maturing in 2022 and a $40.6 million interest payment, both of which were initially due on Nov. 6, following multiple last-minute payments of missed deadlines in the recent months

Another potential default worth $260 million is due soon, Evergrande noted in the filing. The note was issued by joint venture Jumbo Fortune Enterprises and was not heard of by Beijing until a few months ago.


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