China Evergrande Group has informed offshore creditors that it plans to present a restructuring proposal as early as the first week of December, according to a Thursday Bloomberg News report.
The proposal could involve exchanging debt for shares in the company’s Hong Kong-listed auto and property management units, according to unnamed sources cited in the report.
In addition, the group of creditors demanded that Evergrande Chairman Hui Ka Yan invest at least $2 billion of his personal wealth into the company before agreeing to any of its proposals.
Evergrande did not respond to a request for comment immediately.
Reuters reported last week that Evergrande intends to use domestic assets as inducements to win approval from offshore creditors for a long-awaited debt restructuring.
Inundated by $300 billion in liabilities, the company plans to begin restructuring negotiations the following month and is sifting through onshore assets to provide additional credit enhancement to holders of its U.S. dollar-denominated bonds.
Evergrande, once China’s top-selling real estate developer, has been at the center of a deepening property debt crisis that has resulted in multiple developers defaulting on offshore debt obligations over the past year.
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