Read More
China Evergrande (3333) has proposed a new debt restructuring plan for offshore bondholders, offering to swap their debts into about a 30 percent equity stake in each of the developer's two listed subsidiaries, sources said.
ADVERTISEMENT
SCROLL TO CONTINUE WITH CONTENT
The property firm's offshore bondholders holding about US$19 billion (HK$148.2 billion) of debt are likely to take a major haircut on their investments if they agree to the new terms, they said.
The two firms combined have a market value of around HK$9.2 billion, with the parent holding 52 percent of the property arm and 59 percent of the vehicle firm.
A lawyer representing an ad hoc group of key bondholders told a Hong Kong court on Monday the restructuring plan could have a higher recovery rate for creditors than a liquidation scenario of less than 3 percent.
Evergrande was also banned from issuing new US dollar bonds, a key part of its original restructuring plan, while its flagship mainland unit was being investigated by regulators.
Meanwhile, Logan (3380) has also put forward several offshore debt restructuring proposals, including a 15 percent payment discount on up to US$1.3 billion offshore bond principals, mainland media said. Other options include converting up to US$600 million bonds into stocks and issuing new debts to replace the old ones.
This came as China Index Academy said new home prices in 100 Chinese cities rose at a faster pace at 0.07 percent last month but second-hand home prices fell for the 18th straight month at 0.45 percent.
Separately, the People's Bank of China said the outstanding amount of loans to the property sector fell 100 billion yuan (HK$107.8 billion) to 53.19 trillion yuan at the end of September compared with the level a year earlier. That's the first year-on-year drop in the data going back to 2005.
