This is a new very bad development as until recently Evergrande was facing “just” a restructuring. Liquidation = death. Panic then possible as many others potentially in line for the same fate.
Decision date is Monday 30 October, in 20 days.
via YAHOO:
(Bloomberg) — A group of offshore creditors of China Evergrande Group said they were “left in the dark” after the developer scrapped a meeting for its multi-billion dollar restructuring plan, in the latest example of investor frustration with governance issues at some Chinese firms.
The holders of more than $6 billion of the defaulted builder’s offshore public bonds implored the company to resolve any regulatory issues with the country’s securities regulator and top economic planning agency, describing the development as a “complete surprise,” according to a press release Monday.
The comments come after Evergrande said late last month that it was canceling key creditor meetings and must reassess its proposed restructuring. One of the major setbacks the builder cited was that it’s been unable to meet regulator qualifications to issue new bonds, which had been a crucial part of its restructuring proposal.
The creditors’ complaint adds a new twist to Evergrande’s increasingly uncertain destiny, now that Chinese authorities also have launched a probe into founder Hui Ka Yan’s suspected crimes. The world’s most indebted developer with liabilities exceeding $300 billion will face an Oct. 30 court hearing in Hong Kong of a petition to liquidate the firm.
The developer canceled a debt restructuring deal last month, leaving investors in limbo
h/t mark000