[teaserteam]

The total assets 1.7 trillion yuan, the total liabilities are 1.9 trillion yuan, asking for an additional financing of 250 billion to 300 billion yuan

https://twitter.com/RFA_Chinese/status/1...7847322624

[teaserteam]

https://www.zaobao.com.sg/realtime/china...23-1375418

[Blasterlord2]

I'm still waiting for EverGrande boss to be punished.

[sgbuffett]

Looks like Argentina type restructuring.
Creditors just agree to delay all payment out of hope of not being written off...but in actuality they won't get much back.


Evergrande announced three plans to restructure overseas debts, including issuing new bonds to replace old ones
publish / March 23, 2023 at 9:45 AM


China Evergrande Group announced its overseas debt restructuring plan on the evening of Wednesday (March 22). (Reuters file photo)
China Evergrande Group announced its overseas debt restructuring plan on the evening of Wednesday (March 22). (Reuters file photo)
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China Evergrande Group, facing the risk of liquidation, announced three overseas debt restructuring plans on Wednesday night (March 22), including issuing new bonds to replace the original bonds.

Based on reports from the Securities Times and The Paper, Evergrande announced on Wednesday night that Evergrande and the overseas creditor group have signed the main terms of the restructuring plan, that is, Evergrande will issue new bonds to replace the original bonds. The annual interest rate is 2% to 7.5%, no interest is paid for the first three years, and interest is paid at the beginning of the fourth year, and 0.5% of the principal is paid.

It is reported that the signing of the main terms of Evergrande's overseas debt restructuring means that the overseas debt restructuring may be successful. If Evergrande's overseas debt is successfully restructured, the risk of liquidation ordered by the Hong Kong court will be removed.

Evergrande said that the above-mentioned debt restructuring will alleviate the pressure of overseas debt repayment to a certain extent, and provide conditions for the company to resume operations and solve domestic problems. Evergrande will do its best to restore a virtuous circle of funds and business, repair the capital structure, and achieve stable operations.

According to the latest overseas debt restructuring plan, Evergrande Notes, Jingcheng and Tianji will provide 30% equity in Evergrande Property and Evergrande Auto respectively, as well as loans provided by China Evergrande and others to Evergrande Auto Converted into new shares, used as pledge for the issuance of equity-linked notes. At the same time, Jingcheng and Tianji, the main bond issuers, issued a total of US$7.3 billion (the same below, S$9.7 billion) of new notes for extension, all of which were used for restructuring.

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Evergrande Reportedly Announces Overseas Debt Restructuring Plan Today

According to the latest restructuring plan, China Evergrande's two bond issuers, Jingcheng and Tianji, will issue new rollover notes with a total value of US$6.5 billion and US$800 million, respectively, with a term ranging from four to eight years for this restructuring.

According to the Evergrande agreement arrangement, there are three plans for creditors to choose from, that is, creditors can obtain new notes at a conversion ratio of 1:1, with a term of 10 to 12 years; Evergrande pointed out that the group and other parties provided loans to Evergrande Automobile amounting to US$2.704 billion, which can be converted into shares at a conversion price of HK$3.84 (S$0.65) per share. Pledge, required for this reorganization; a combination of both is an option.

Evergrande estimates that, based on the information it has obtained about 80% of overseas debts, if the group is forced to liquidate due to unsuccessful restructuring, the estimated recovery of overseas unsecured creditors is only expected to be about 9.728 billion yuan (the same below, S$1.880 billion); The various creditors estimate the recovery rate to be at least about 2%.

China Evergrande has been suspended for a year since March 21 last year. In this regard, Evergrande said that as of the announcement date, none of the resumption conditions have been met, and the company will continue to work hard to meet the resumption conditions as soon as possible under actual circumstances. At present, the company is still preparing the unpublished audited annual results. , In May, the annual performance reports for 2021 and 2022 will be released.

Regarding the progress of domestic debt, Evergrande said that since 2022, it has completed the extension of the principal or interest of nine domestic corporate bonds. billion yuan.

At the same time, Evergrande’s domestic debt overdue scale is relatively large. On December 31, 2022, the overdue amount of domestic interest-bearing liabilities reached about 208.4 billion yuan, the overdue amount of domestic commercial acceptance bills reached about 326.3 billion yuan, and the overdue amount of domestic contingent debts amounted to about 157.3 billion yuan, and some domestic creditors have also taken legal action against the group.

Evergrande disclosed that as of March 22, the number of pending litigation cases with a target value of more than 100 million yuan exceeded 789, with a total target value of about 331.3 billion yuan, and the number of pending arbitration cases exceeded 43. Reached about 32.2 billion yuan.

Evergrande also disclosed the latest situation of the new energy vehicle business in the announcement. Among them, Hengchi 5 has been officially mass-produced on September 16, 2022, and the first mass-produced car has been delivered on October 29, 2022. As of the announcement date, Evergrande New Energy Vehicles has delivered more than 900 vehicles.

However, due to tight liquidity, in order to maintain basic business operations, Evergrande New Energy Automobile has taken measures to cut costs, such as reducing the number of employees. As of March 2023, Evergrande New Energy has a total of 2,795 employees. The number of employees on June 30, 2019 decreased to 3,742. According to Evergrande's analysis, in the absence of new liquidity injection, Evergrande's new energy vehicles will face the risk of suspending production.