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Evergrande Moves Toward Restructuring as Debt Deadlines Loom

  • Developer says it will ‘actively engage’ with creditors
  • Chinese authorities try to head off concerns about contagion
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WATCH: The long-awaited debt restructuring of embattled developer China Evergrande Group may finally be at hand. Stephen Engle reports.Source: Bloomberg
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China Evergrande Group’s long-awaited debt restructuring may finally be at hand, posing a fresh test for Xi Jinping’s government as it tries to rein in the country’s financial excesses without derailing economic growth.

The embattled developer said in an exchange filing late Friday that it plans to “actively engage” with offshore creditors on a restructuring plan, offering its most explicit acknowledgment yet that its $300 billion of overseas and local liabilities have become unsustainable. The stock plunged 20% Monday to a record low.