(Adding details from the report.)
(Reuters) – China Evergrande Group is in talks with creditors for a restructuring plan that includes two options to extend the maturity of unsecured offshore debt, Bloomberg News reported on Monday. reported to be included.
One of the proposed options would involve paying off the principal amount of the debt in full within 12 years in installments, the report said, citing sources.
Coupon payouts for these newly issued securities replacing older ones will be set in the range of about 2%, he added.
The second proposal would transfer a portion of the debt to shares in Evergrande and its automotive and property management arm, China Evergrande New Energy Vehicle Group Ltd and Evergrande Property Services Group Ltd, by issuing new hybrid securities such as convertible bonds. We are asking creditors to exchange for report.
For the second proposal, the installment plan also extends the maturity, but with a coupon set at around 6% to 7% and for a shorter period, the report added.
Evergrande did not immediately respond to a request for comment.
Once China’s best-selling developer, Evergrande is now at the center of the country’s real estate crisis, with more than $300 billion in debt amid a debt restructuring. (Reporting by Akanksha Khushi in his Bangalore; Editing by Uttaresh.V and Dhanya Ann Thoppil)
