Evergrande's $1.2 bln onshore bondholders to vote on offshore restructuring plan on Wed

Guotai Haitong Securities Co

24/04/2023 11:14

HONG KONG, April 24 (Reuters) - China Evergrande Group's
 3333.HK  onshore flagship unit Hengda Real Estate said the
holders of an onshore bond worth 8.2 billion yuan ($1.19
billion) will hold a meeting on Wednesday to vote whether they
will join the group's offshore restructuring proposal. 
    The bond in question, due July 8 after extending the
maturity by 12 months last year, could be the first onshore
notes offered the same offshore restructuring terms in this
round of debt crisis in the sector, fund managers said.
    Onshore debts usually have a higher repayment priority than
offshore counterparts and hence get better restructuring terms.
    With more than $300 billion in total liabilities including
offshore debt, Evergrande has been at the centre of a property
debt crisis in which multiple Chinese developers defaulted over
the past year, forcing many to enter debt restructuring talks.
    In the filing dated Friday, Hengda said bondholders involved
will vote whether they would authoritize Guotai Junan Securities
to represent them to approve the offshore restructuring
proposal. 
    In Evergrande's offshore debt restructuring proposal
announced last month, creditors can either swap all of their
holdings into new notes with maturities of 10 to 12 years, or
convert them into different combinations of new notes with
tenors of five to nine years and equity-linked instruments.
    According to the proposal, related to onshore debt, the
terms only apply to the 8.2 billion yuan bond and guarantees
provided to debts worth $8.09 billion. 
    Evergrande's creditors will receive a fee of 0.25% of their
outstanding debt if they submit their consent to the proposal by
Thursday evening. 
    Hengda said in the Friday filing if the agenda gets
rejected, bondholders can still join the restructuring plan on
their own, the filing added.

($1 = 6.8921 Chinese yuan renminbi)

 (Reporting by Clare Jim; Editing by Louise Heavens)
 ((clare.jim@thomsonreuters.com;))