China Evergrande suffers new blow as curbs on offshore bond sales raise survival alarm

 

China Evergrande suffers new blow as curbs on offshore bond sales raise survival alarm, hobble US$20 billion debt workout

    Troubled developer did not meet requirements to sell new offshore debt, saying its onshore unit Hengda is being investigated by authorities. The firm earlier cancelled creditor meetings scheduled for this week, citing weak home sales and the need to reassess restructuring terms.

 The debt crisis at China Evergrande Group deepened after it failed to meet the nation’s capital-market rules on offshore bond sales, as efforts to repay US$20 billion of defaulted debt to foreign creditors hit a critical roadblock and heightened concerns about its survival.

The developer said it has failed to meet the administrative measures imposed by the China Securities Regulatory Commission and the National Development and Reform Commission for the issuance of new notes in its debt restructuring plan, citing an “investigation” involving its key onshore unit Hengda Real Estate Group.

“The group is unable to meet the qualifications for the issuance of new notes under the present circumstances,” chairman and founder Hui Ka-yan said in a filing to the Hong Kong stock exchange late on Sunday. The administrative measures were related to sale and listing of securities by local companies in offshore markets.