China Evergrande creditors seek controlling stakes in new proposal
(Reuters) -A group of offshore creditors to China Evergrande (HK:3333) Group is asking for a controlling equity stake of the developer and two of its Hong Kong subsidiaries as part of company's revised debt restructuring proposal, a source familiar with the matter said on Friday.
Bloomberg News first reported the request on Friday, citing people familiar with the matter.
The group, which works as an ad hoc group of Evergrande's offshore creditors, made the request after the developer earlier this week made a new offer to repay their offshore debts, the source said.
Reuters reported on Thursday that Evergrande had offered to swap some offshore debt into equity in the company and two Hong Kong-listed units, and repay the rest with non-tradeable «certificates» backed by offshore assets.
Evergrande has until a Hong Kong court hearing on Monday to present a «concrete» revised debt restructuring proposal for offshore creditors, a judge said last month after its original plan had lapsed.
The source declined to be named as the discussions were private.
Evergrande declined to comment.
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