Evergrande Creditors Demand Controlling Stakes in New Proposal
- Pitch comes after distressed company offered smaller stakes
- Developer is due in court for potential liquidation on Dec. 4
The Evergrande Center under construction in Hefei, China.
Source: Bloomberg
A group of offshore creditors to China Evergrande Group is demanding controlling equity stakes of the property developer as well as its two Hong Kong subsidiaries as part of discussions on the firm’s revamped restructuring proposal, according to people with knowledge of the matter.
Their offer is the latest twist before a court hearing on Monday, when the distressed developer faces the risk of a liquidation order unless it submits a convincing restructuring plan. Creditors are requesting their debt be swapped for controlling stakes, the people said, after Evergrande proposed offering 17.8% of the parent and 30% of each of the subsidiaries — Evergrande Property Services Group and China Evergrande New Energy Vehicle Group.