What’s new: Debt-ridden China Evergrande Group said Wednesday it aims to submit a preliminary debt restructuring proposal within six months as it struggles to allay creditors’ concerns over its ability to repay a mountain of debt.
At a meeting with creditors, Xiao En, an Evergrande executive board member, said the board and the risk management committee are working to restart construction on projects and to draft a restructuring plan. No details of the plan were disclosed.
The meeting was chaired by Chen Yong, a member of the risk management committee and the compliance director at Guosen Securities Co. Ltd.
The context: Since the second half of last year, Evergrande has been locked in a liquidity crisis after the regulators tightened curbs on property developers’ financing. It has been struggling to repay more than $300 billion in liabilities, fueling concerns about its broader systemic risk.
The government of South China’s Guangdong province where the developer is based has dispatched a team and set up a risk management committee at Evergrande, which will be responsible for determining the conglomerate’s actual financial condition and ensuring that it can keep running.
The team has nearly finished calculating the total assets and liabilities of Evergrande and its regional branches, sources with knowledge of the issue told Caixin.
Related: Year in Review: How Evergrande Shook China’s Real Estate Sector to Its Core
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)
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