Global Creditors Face Long Fight With China Developers for Cash
- Builders struggle to pay amid protracted property crisis
- Latest tactic by bondholders to claw back money hits a snag
The construction site of a residential project, formerly developed by China Evergrande Group, in Beijing, earlier in March.
Source: BloombergGlobal creditors are bracing for a long-drawn battle to recover money from China’s troubled developers, as a property meltdown continues to roil the nation’s $735 billion offshore bond market for a third straight year.
Frustrated dollar bondholders have been trying all they can to make defaulters pay, but their efforts have largely been stymied by lengthy debt restructuring processes and litigation. Below their onshore peers in the pecking order, a few have appealed for intervention by regulators. Many have even resorted to winding-up petitions, a risky legal action that could backfire by triggering fire sales at distressed prices.