Evergrande creditor group supports maintaining operations, not bankruptcy-SCMP By Reuters

<p> <br /> </p> <div> <div> <img decoding="async" alt="Evergrande creditor group supports maintaining operations, not bankruptcy-SCMP" id="carouselImage" src="https://i-invdn-com.investing.com/trkd-images/LYNXMPEJB1011_L.jpg" style="visibility:hidden" /><br /> <span>© Reuters. FILE PHOTO: A partially removed company logo of China Evergrande Group is seen on the facade of its headquarters in Shenzhen, Guangdong province, China January 10, 2022. REUTERS/David Kirton/File Photo</span><br /> <i class="imgGrad"/> </div> <p>HONG KONG (Reuters) &#8211; A key offshore creditor group of China <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Evergrande </span></span> (HK:) Group supports keeping the developer operating, the South China Morning Post (SCMP) reported ahead of a court hearing on Monday that could decide to liquidate the indebted firm.</p> <p>The group, which owns about $2 billion in offshore notes guaranteed by Evergrande, issued a statement late on Friday urging that Hengda Real Estate, Evergrande’s flagship onshore unit, be allowed to maintain operations to ensure completion of homes and delivery of homes, the newspaper said.</p> <p>&#8220;No stakeholders of Hengda, be it customers, suppliers, creditors, or the (Chinese) government, would benefit from forcing Hengda into a multi-year, value-destructive bankruptcy process,&#8221; it cited the statement as saying.</p> <p>&#8220;Such a bankruptcy process would only detract from the common goals of ensuring the prompt completion of projects and the timely delivery of homes, as well as procuring the long-term sustainability of Hengda as a going concern.&#8221;</p> <p>Evergrande, the world&#8217;s most indebted property developer, and the advisers to the creditor group did not immediately respond to requests for comment.</p> <p>The SCMP quoted the advisers, the Kirkland &amp; Ellis law firm and investment bank Moelis (NYSE:), as saying the creditors would &#8220;continue working together with Hengda and its management to support their efforts&#8221;, adding there was &#8220;no benefit or upside&#8221; in any bankruptcy of Hengda to the noteholders.</p> <p>Evergrande has until the Hong Kong court hearing on Monday to present a &#8220;concrete&#8221; revised debt restructuring proposal for offshore creditors, a judge said last month after its original plan had lapsed.</p> <p>Reuters reported on Thursday that Evergrande this week sought to avert liquidation with a restructuring proposal, offering to swap some offshore debt into equity in the company and two Hong Kong-listed units, and repay the rest with non-tradeable &#8220;certificates&#8221; backed by offshore assets.</p> <p>The creditors group responded by demanding a controlling equity stake in Evergrande and the two Hong Kong subsidiaries, a source familiar with the matter said on Friday. </p> </div> <p><br /> <br /><a href="https://www.investing.com/news/stock-market-news/evergrande-creditor-group-supports-maintaining-operations-not-bankruptcyscmp-3248098">Source link </a></p><p>The post <a href="https://forextraderhub.com/evergrande-creditor-group-supports-maintaining-operations-not-bankruptcy-scmp-by-reuters.html">Evergrande creditor group supports maintaining operations, not bankruptcy-SCMP By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>