The Chinese group Evergrande has announced a plan for the restructuring of 19,148 million dollars (17,728 million euros) of its ‘offshore’ debt, which represents 84% ​​of the total, which amounts to 140,284 million yuan (18,858 million euros). ).

Specifically, the real estate group has confirmed “progress” with a series of large creditors, including holders of senior debt for an aggregate amount of 13,922.5 million dollars (12,890 million euros) issued by the company and another 5,226 million dollars. (4,838 million euros) in senior debt issued by Scenery Journey Limited (SJ) and guaranteed, among others, by Tianji Holding.

“The proposed restructuring complies with international standards and best practices,” the company said in a statement sent to the Hong Kong Stock Exchange.

In this sense, the Chinese conglomerate maintains that the proposal not only protects the legitimate rights and interests of various creditors in accordance with the law, but also gives creditors enough flexibility to choose between different plans.

In this way, creditors have the right to choose between exchanging the debt for new company promissory notes with a term of 10 to 12 years or opting to convert their rights into new company promissory notes with a maturity of between 5 and 9 years, in addition of 5 instruments mandatorily convertible into (as applicable) shares of Evergrande Property Services, Evergrande NEV, the electric vehicle subsidiary.

Evergrande has indicated that it expects to agree and enter into one or more restructuring support agreements with its creditors “no later than March 31, 2023” and expects the effective date of the restructuring to be October 1, 2023. .

“The proposed restructuring will ease the company’s foreign borrowing pressure and facilitate efforts to resume operations and resolve issues in the country,” Evergrande said.

The Chinese real estate giant, plagued by difficulties in meeting a liability estimated at around 300,000 million dollars (277,749 million euros) and whose shares have been suspended from trading for a year on the Hong Kong Stock Exchange, had breached the self-imposed deadline to make its restructuring plan known by the end of 2022.