China Lets Evergrande Reset Debt Terms to Ease Cash Crunch
- Regulatory nod may buy time for developer to offload assets
- Evergrande’s dollar bonds rally from record lows Thursday
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Regulators in Beijing have signed off on a China Evergrande Group proposal to renegotiate payment deadlines with banks and other creditors, paving the way for a temporary reprieve as the cash-strapped developer struggles to come to grips with more than $300 billion of liabilities.
China’s Financial Stability and Development Committee, the nation’s top financial regulator, gave its blessing to Evergrande’s plan last month after the property giant missed interest and principal payments on some loans, a person familiar with the matter said, asking not to be identified discussing private information.