China Evergrande Group delayed key votes on its offshore-debt restructuring plan just hours before they were to occur Monday, adding to uncertainty in a protracted process to finalize one of the country’s biggest restructurings ever, Bloomberg News reported. The distressed developer, at the epicenter of a property crisis that’s unleashed record delinquencies in a threat to China’s financial markets, delayed the meetings for the group and some units to Sept. 25-26, it said in a filing. Evergrande cited a desire to let creditors evaluate recent developments including resumption of trading in its stock, as well as the terms of the proposals. Its shares slumped as much as 87% in Hong Kong trading following a 17-month halt, becoming a penny stock. “Not enough votes is probably the reason for the delay,” said Ting Meng, a senior credit strategist at Australia & New Zealand Banking Group, adding that it is uncertain whether the meeting will be further delayed later. While resumption of share trading helps creditors gauge value as they think about how to vote, the sharp drop in the stock price has likely given them more concerns, she said. Investor patience is running thin. Evergrande shot past previous targets in unveiling its restructuring plan, and global money managers are still seeking clarity on what they might recover some 20 months after the firm’s first public bond default. The last-minute change Monday is also the second such abrupt delay from a major distressed Chinese developer in just days, after Country Garden Holdings Co. pushed back voting Friday on its request to extend payment on an onshore bond.
