China Evergrande's liquidators ask investors to join restructuring process (updated)

Shimao group

09/08/2024 14:19

(Adds details from statement in paragraphs 3-7)
       Aug 9 (Reuters) - China Evergrande's  3333.HK 
liquidators have invited investors interested in restructuring
the heavily indebted property developer or any of its parts, it
said in a filing on Friday.
    The move comes as the liquidators do not currently see a
path to restructuring that would allow Evergrande to resume
trading of its shares due to its high debt and business
challenges, the company said. 
    The liquidation process is the result of a Hong Kong court
order after the company that was once China's largest property
developer failed to restructure $23 billion in offshore debt.
Its total liabilities stood at more than $300 billion. 
    Consultancy firm Alvarez & Marsal, which is managing the
company's affairs as liquidators of Evergrande, has been trying
to salvage value for creditors, while seeing little chance for
restructuring without new investment, the company said.
    "The Liquidators would welcome any potential investors
interested in pursuing a restructuring of the company, or any of
its constituent parts," Evergrande said and shared an email
address for potential investors to contact.
    Since the Chinese property sector plunged into a debt crisis
in 2021, numerous high profile developers such as Shimao
 0813.HK  and Country Garden  2007.HK  have been hit with
liquidation lawsuits from creditors. 
    A Hong Kong court on Thursday adjourned a liquidation
petition against Shimao for the third time, buying the embattled
developer more time to work with creditors on a revised
restructuring plan.

 (Reporting by Roushni Nair in Bengaluru; Editing by Arun
Koyyur)
 ((Roushni.Nair@thomsonreuters.com;))