China Evergrande falls short of restructuring plan

Evergrande has failed to deliver on its promised initial debt restructuring plan by the end of July.

On July 29, Evergrande said the group re-evaluated the situation to formulate solutions that respect the rights of all stakeholders and aim to restore order. It also stated that it has been communicating with its overseas subsidiary Jingcheng Company to form overseas debt restructuring plans. The company said that the due diligence work is expected to be completed soon. It hopes to announce a specific restructuring plan in 2022 and make positive progress.

In H1, Evergrande achieved sales of about 12 billion yuan (US$1.8 billion). The actual number of construction workers has reached 86 percent of normal requirements. Since July last year, Evergrande has completed and delivered 232,000 properties.