by Clare Jim and Jason Xue
HONG KONG, Jan 26 (Reuters) – Real estate group China Evergrande Group said on Wednesday it had set itself the goal of drawing up a restructuring plan within six months, in its first direct statement to creditors since the start of the its financial difficulties last year.
The former leading real estate developer in China is awash in debt equivalent to more than 260 billion euros and is struggling to repay its creditors, suppliers and holders of its financial products.
It was unable to meet bond coupon payments last month, prompting calls for negotiations to restructure its debt.
Its chief executive, newly appointed Siu Shawn, who is also chairman of Evergrande New Energy Vehicle Group, said in a teleconference meeting that the group was working on a comprehensive restructuring plan that it foresees. to unveil within six months.
“The Board of Directors and the Risk Management Committee would like to continue communicating with investors and respectfully request that they do not take any aggressive legal initiatives in order to maintain stability, in the mutual interest of all stakeholders,” said Siu Shawn said.
On Monday, a group of creditors said they were ready to take “all necessary measures” to defend their interests.
“We have taken note of the doubts on transparency and on the restructuring process of the group, we would like to take this opportunity to explain to all creditors that the board of directors, the risk management committee and the group will cooperate quickly to stabilize the group’s activities,” added Siu Shawn.
Some bondholders, however, expressed disappointment with the meeting, lamenting the lack of clarity on Evergrande’s intentions.
“Frankly speaking, I believe the decision is up to the government, the group is quite passive,” said one, who requested anonymity because he is not authorized to speak to the press.
“The teleconference was disappointing. I did not expect spectacular announcements but some details on the activities would have been useful. Six months is a long time for a draft restructuring plan”, judged Himanshu Porwal, credit analyst at Seaport Global.
(French version Marc Angrand)