Embattled property developer China Evergrande Group said Wednesday that within six months, it aims to release a global restructuring plan that would respect offshore creditors’ legal rights, after a group of its bondholders threatened last week to sue the company for failing to engage with them, WSJ Pro Bankruptcy reported. During a call with offshore creditors, Evergrande promised to follow the rule of law and respect bondholders’ rights, which in some cases include claims on the company’s secured offshore assets, according to people familiar with the matter. Evergrande also said on the call that its founder and Chairman Xu Jiayin might provide additional financial support to the company as it navigates a prolonged restructuring. The company didn’t discuss any details of its restructuring plan, such as potential bondholder recoveries or asset-sale plans, according to the call participants. Evergrande, once China’s largest property developer, defaulted on its debt in December and is struggling to address more than $300 billion in liabilities, including nearly $20 billion in international bonds. Yesterday’s call came a week after a group of Evergrande’s foreign creditors threatened a legal enforcement plan that could potentially include liquidation of the company’s assets. The group said it was fully within its rights to do so after a continued lack of engagement from Evergrande’s side since the company defaulted. On Monday, Evergrande issued a statement asking the creditors for more time.
