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HONG KONG (Reuters) – China Evergrande Group shares fell on Thursday as investors in a debt-ridden developer questioned the company’s detailed plan to make a six-month preliminary restructuring proposal.
Once a major Chinese developer, Evergrande has accumulated more than $ 300 billion in debt and is struggling to pay off creditors, suppliers and investors in wealth management products.
On Wednesday night, Evergrand executives told creditors in a call that they hoped to work with them to reach a risk management solution, and that all categories of creditors would “follow fair and international practice.” The company has also asked creditors not to take “aggressive legal action”.
But some bondholders were disappointed by the 25-minute call, including prepared answers to questions, saying they had not provided information about Evergrand’s plans.
Shares of Evergrand fell 9.6% to HK $ 1.60 ($ 0.2054), the two-week low of 0157 GMT.
This is compared to a 1.7% drop in the benchmark and a 2.5% drop in the Hang Seng Mainland Properties Index.
The long-awaited communication with creditors comes at the back of Beijing tightening control over the real estate developer as it takes steps to stabilize the real estate sector hit by the Chinese crisis.
Evergrand lost some dollar bond payments last month, sparking calls for talks, and nearly $ 20 billion of its international bonds are believed to be in default.
($ 1 = $ 7.7883 Hong Kong dollars)
(This story is replayed to correct typographical errors in the title).
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