Evergrande proposes offshore creditors get 30% equity stake in subsidiaries

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Legal respite: China Evergrande's court hearing deferred to Dec 4; judge gives last chance for resolution plan The property developer's dollar bonds last traded at about 2.25 cents on the dollar on Tuesday, according to LSEG data, as bondholders weigh the possible recoveries in the revised restructuring plan against other options like a winding up. A lawyer representing an ad hoc group of key bondholders told a Hong Kong court on Monday the restructuring plan could have a higher recovery rate for creditors than a liquidation scenario of less than 3%.

Shares in the units the bondholders will be offered the stake in, Evergrande Property Services Group and Evergrande New Energy Vehicle Group (NEV), have fallen by more than 80% this year amid Evergrande's debt woes. Also Read | China property crisis: Know about rise and fall of Evergrande Founder Hui Ka Yan | Explainer Their combined market value was only around HK$9 billion ($1.15 billion) as of Wednesday morning, with the parent holding 52% of the property arm and 59% of the vehicle firm.

Creditors would be given existing shares of the two units, the first source said, in a deal that would need to be approved by Chinese regulators. The new plan was raised with some bondholders about two weeks ago, the first source added, after Evergrande's original debt restructuring plan was thrown off course when its billionaire founder Hui Ka Yan was in late September confirmed to be under investigation for suspected criminal activities.

Evergrande was also banned from issuing new dollar bonds, a key part of its original restructuring plan, while its flagship mainland unit was being investigated by regulators. The second source said the new plan was driven by a working committee under