Offshore Debt to Be Included; Kaisa Proposal: Evergrande Update
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China Evergrande Group is planning to include all its offshore public bonds and private debt obligations in a restructuring that may rank among the nation’s biggest, people familiar with the matter said. The embattled developer’s stock tumbled to a record low, while a dollar bond suffered its biggest drop ever.
Evergrande said in a filing late Friday that it plans to “actively engage” with offshore creditors on a restructuring plan as grace periods on two dollar bond payments end Monday. Kaisa Group Holdings Ltd. bondholders, meanwhile, sent the company a formal forbearance proposal, designed to buy the beleaguered developer some time and avoid a default.