The holders of an onshore bond worth 8.2 billion yuan($ 1.19 billion ) will hold a meeting on Wednesday to decide whether to join the group's's offshore restructuring proposal, according to HONG KONG( Reuters )- Hengda Real Estate, the offshore flagship company of China Evergrande Group.
According to fund managers, the friendship in question, which is due on July 8 after having its maturity increased by 12 months last year, may be the first inland notes to offer the same offshore restructuring terms during this period of the sector's's mortgage crisis.
Inland debts typically receive better restructuring terms because they have a higher repayment priority than onshore counterparts.
Evergrande has been at the center of a property debt crisis in which several Chinese developers have defaulted over the past year, forcing many to engage in debt restructuring talks. The company has total liabilities of more than$ 300 billion, including offshore debt.
Lenders involved will vote on whether to authorize Guotai Junan Securities to symbolize them in approving the seaward reform proposal, according to Hengda in the issuing dated Friday.
In Evergrande's's proposal for offshore debt restructuring, which was unveiled last month, creditors have the option of converting all of their holdings into new notes with 10 - to 12-year maturities or into various new note combinations with 5 - to 9-year tenors and equity-linked instruments.
Only the 8.2 billion yuan bond and the guarantees offered to debts worthwhile$ 8.09 billion are covered by the plan, which is related to onshore debt.
If Evergrande's's creditors agree to the plan by Thursday night, they will be paid a rate of 0.25 percent of their outstanding debts.
Bondholders can now add the restructuring plan on their own, Hengda said in the filing on Friday, even if the agenda is rejected.
Chinese yuan renminbi($ 1. 6.8921 )
Onshore borrowers of Evergrande's's$ 1.2 billion will vote on an offshore restructuring plan on Wednesday.
