China Evergrande Falls Short of Promised Restructuring Plan
- Separately, unit must pay $1.1 billion after arbitration loss
- Debt crisis in China’s property sector has been spreading
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China Evergrande Group, the world’s most indebted developer, failed to deliver a ‘preliminary restructuring plan’ it had promised by the end of July, fueling risks investors will grow more impatient just as a broader debt crisis in the nation’s property industry spreads.
The beleaguered real estate giant presented instead what it called ‘preliminary restructuring principles’ for its offshore debt, in an exchange filing late Friday. The stakes are high, with some $20 billion in dollar bonds among total liabilities of about $300 billion. Any restructuring could be among China’s biggest ever.