Struggling Chinese developer Evergrande says it will ‘actively engage’ with creditors

LONDON, Dec. 22 (Reuters) – Chinese real estate giant Evergrande said on Wednesday it would “actively engage” with its creditors following its recent debt repayment delays.

Evergrande, the world’s most indebted developer with more than $ 300 billion in liabilities, including nearly $ 20 billion in international market bonds, was officially declared in default by rating agencies this month after missed his repayments.

“Given the risks the group is currently facing, the China Evergrande group risk management committee is using its vast resources and will actively engage with the group’s creditors,” Evergrande said in a statement to the Hong Kong Stock Exchange. .

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The committee, which includes Evergrande chairman Hui Ka Yan, was set up this month.

Evergrande’s problems this year have sparked a massive crisis among heavily indebted Chinese real estate companies.

Kaisa, another big developer, is also in talks with its bondholders, which include some of the world’s largest investment funds, after failing to repay a $ 400 million bond this month.

Other developers Fantasia (1777.HK) and China Modern Land have also defaulted in recent months, while credit rating agencies and bank analysts warn a number of other large companies are also at risk. Read more

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The Chinese real estate stock in 2021

Reporting by Marc Jones; edited by Jason Neely

Our Standards: Thomson Reuters Trust Principles.


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