China Evergrande’s offshore creditors to join winding-up petition if it fails to submit new debt revamp plan: Report

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Reuters citing two sources. In March, Evergrande had unveiled offshore debt restructuring plan, but uncertainty has surrounded it after the developer on Sunday said that it was unable to issue new debt due to an ongoing probe into its main unit in China.

Evergrande's main domestic unit, Hengda Real Estate Group, said in a Shenzhen stock exchange filing late on Monday it had failed to pay the principal and interest for a 4 billion yuan ($547 million) bond that was due by September 25. The cash-strapped developer has been seeking creditors' nod for its proposals to restructure offshore debt worth $31.7 billion which includes bonds, collateral, and repurchase obligations.

According to the Reuters report citing the two sources, a group of Evergrande bondholders were surprised by the company’s announcement that it was unable to issue new notes, and have been seeking meetings with the developer to seek more information. If Evergrande fails to submit a new debt restructuring plan by October 30, that bondholders' group will support a winding-up petition already filed against the developer, said the report citing one source.

Hengda said it will actively negotiate with bondholders in a bid to reach a solution as soon as possible while working to resolve the debt risks and to safeguard creditors' rights and interests. Shares of China Evergrande Group fell as much as 8% on Tuesday, after a unit of the embattled property developer missed an onshore bond repayment.

In July, the hearing for that winding-up petition against Evergrande was adjourned to October 30, in order to wait for the result from the developer's meeting with creditors to vote on its debt restructuring plan. (With inputs from Reuters)"Exciting news! Mint is now on