Advisers say Evergrande failing to engage with investors as default looms


An advisor to Evergrande’s International Investor Group advises Chinese developers with large debts to be meaningfully involved with them or sell potential assets, despite their demands, in preparation for the impending default. It states that it does not provide details of.

Law firm Kirkland & Ellis and US investment bank Moelis have been hired by international bondholders to pay significant interest on September 23. Evergrande could not be made, Causes volatile transactions throughout the international market and has a global reputation for the health of China’s real estate sector.

Evergrande has a 30-day grace period for the first omission of payment before the default is officially declared. I also missed the second payment on September 29th.

The company did not announce any omissions. An advisor representing a group of bondholders with $ 5 billion Evergrande debt has “meaning” with the company since first contacting the company in mid-September on a phone call to renew them on Friday night. He said he had not received “a certain involvement”.

Bert Grisel, managing director of Moelis, told investors over the phone:

The advisor also said Evergrande had Sold $ 1.5 billion in shares A local bank expressed “concern” about the company’s offer of rumors to the Hong Kong-listed real estate services sector.

The world’s most debt-rich developers, who are rushing to sell their assets in the fight to survive, said last week they sold some of their shares in China’s local lender Shengjing Bank to a state-owned enterprise.This week, the stock and the stock in the real estate services sector Suspended Prior to the latter possible offer, it had a market value of $ 7 billion and was listed in Hong Kong at the end of last year.

“We don’t have any details about these transactions … But we hope the company will provide us with information or comply with it. [disclosure] Kirkland & Ellis partner Neil McDonald told investors.

“I believe the company had every opportunity,” he added. “It’s hard to understand why the demands aren’t being met as we think.”

Grisel told investors that Shengjing’s deal could be a “preferential treatment.” The proceeds are expected to be used by Evergrande to repay the debt owed to the bank itself.

Evergrande did not immediately respond to the request for comment.

A late September omission caused sales in the heavily borrowed Asian high-yield bond market, with bonds due next year trading at around 24 cents for $ 1.

The company hired US investment bank Houlihan Lokey to seek advice, but has not yet announced payments for offshore bonds.

This week, another Chinese real estate developer, Fantasia, said $ 206 Million Offshore Bond Default I disclosed the failure of repayment in the documents submitted to the Hong Kong Stock Exchange.

Evergrande’s stake, with total debt of over $ 300 billion and nearly 800 projects across China, has fallen by more than 80% this year. In August, we warned about the default risk of interim results.

Now widely expected Restructuring required It will be one of the largest in Chinese history.

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The post Advisers say Evergrande failing to engage with investors as default looms appeared first on California News Times.

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