The debt restructuring plan of the former number one in real estate in China, Evergrande, has been approved by its creditors. A breakthrough for the group, on the verge of bankruptcy, strangled by a massive debt of nearly 300 billion dollars.
The Chinese real estate giant Evergrande has just announced an offer to buy back its debt from a group of international creditors, which include the asset manager BlackRock, the Swiss bank UBS and even the insurer Allianz.
Evergrande agreed to exchange the payment of its debt against new bonds, and above all a stake in its prestigious subsidiary of electric cars.
Objective: to maintain the operation of the activity, and to deliver the goods to the customers. Although the group has resumed work on nearly 700 construction sites, many projects are still at a standstill, which angers owners waiting for their homes.
With the announcement of this restructuring plan, Evergrande tries to reassure, because its collapse would have disastrous consequences for the Chinese economy. It’s urgent. In the wake of the giant, other promoters, big or small, could waver.
China’s real estate sector alone accounts for a quarter of its Gross Domestic Product.
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