Hong Kong’s Supreme Court on Monday approved a request by China Evergrande and its main offshore credit group to postpone a liquidation request against the group to November 7.
An online real estate and auto investor from Evergrande’s unit Fangchebao (FCB) filed the petition in Hong Kong in June because the developer failed to honor a $110 million deal to buy back the investor’s shares.
At a hearing on Monday, Judge Peter Ng said the immediate liquidation would derail Evergrande’s efforts to restructure all offshore creditors.
He said the rights of other creditors must also be respected if they have a better chance of recovery in the restructuring plan, as an ad hoc group of Evergrande’s offshore creditors, which owns $3 billion of the company’s debt, also objected to the liquidation petition
Ng said the speed of Evergrande’s restructuring was unsatisfactory, but he acknowledged the complexity and size of the company’s debt and expects significant progress on the restructuring until the next hearing.
Following the court adjournment, Evergrande said it is actively working on the offshore debt restructuring with its financial and legal advisors and intends to announce a concrete plan that respects the rights of all interested parties as soon as possible.
Source: CNN Brasil
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