China Evergrande set to outline plan to restructure by end of July

China Evergrande is aiming to announce a preliminary restructuring plan by the end of July, a possible sign that the real estate developer is on track to address its financial woes.

“The company is actively pushing forward with its restructuring work,” Evergrande, which has defaulted on several of its commitments to foreign bondholders, said 20 June.

Evergrande said that it is also taking appropriate steps to comply with Hong Kong exchange rules to avoid a possible delisting of its shares.

Shares of the developer have been suspended since 21 March. The Hong Kong stock exchange may cancel the listing of any securities that have been suspended from trading for a continuous period of 18 months.

READ Banks seize $2bn from Evergrande unit as results delayed

The property giant had amassed around $300bn in liabilities as of last June, including around $20bn in outstanding US dollar bonds.

Evergrande has struggled to meet its obligations since the summer, and has missed final deadlines for interest payments on several US dollar bonds. All three major credit-rating companies have declared it to be in default.

Late last year, Evergrande said it had turned to its provincial government for help in dealing with its liquidity crisis.

The government of Guangdong is helping the company manage its risks, and Evergrande has set up a risk-management committee that includes its top executives and representatives of several state-backed entities.

Write to P R Venkat at [email protected]

This article was published by Dow Jones Newswires, a fellow Dow Jones Group service

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