China Evergrande announces the progress and basic principles of overseas debt reorganization work and basic principles

21st Century Business Herald reporter Wu Shuying Guangzhou reports

On the evening of July 29, 2022, China Evergrande issued an announcement to introduce recent business progress and announce the progress and basic principles of its overseas debt reorganization.

Evergrande stated in the announcement that in recent stages, it has always been with the financial and legal consultant evaluation group to formulate solutions to respect all the rights of all interests, and aims to gradually restore orderly operations and release operations and asset value.

Evergrande emphasizes that it has always conducted constructive communication with a number of US dollars issued by the company and its overseas subsidiary Scenery Journey Limited to promote the formulation of overseas debt restructuring plans.

In addition, Evergrande also said that it is closely cooperating with creditors and relevant advisers and regular communication. It is conducting necessary and orderly due diligence investigations on the core business of the group to explore the potential and feasible overseas debt reorganization plan. Important basis for overseas debt restructuring plans. In view of the size and complexity of the group and the current status of the industry, due diligence is still being advanced.

In the announcement, Evergrande stated that the overseas debt reorganization plan planned will be based on the principles of respect for international reorganization, fair treatment of all creditors, and arrangement of security measures.

The principle of respect for international reorganization refers to that although the overseas debt reorganization plan may need to be based on different factors, including the structure of different debtors, the structure of debt, the priority order, and the expected recycling rate of each debt to divide different overseas debts For groups, the design of the reorganization plan will fully consider the legitimate rights and interests of different groups of creditors, and follow all relevant laws and international practices.

The existing rights and creditor's rights to treat all creditors means that Evergrande understands the importance of treating creditors fairly in accordance with the law and will not favor any individual creditors. Evergrande's consultant is still analyzing the rights and demands of creditors, and the principles of the creditor fairly will be reflected in the reorganization plan.

The guarantee measures are that Evergrande will arrange asset packets as appropriate as a guarantee measure for overseas debt restructuring. The assets in the asset package may include but are not limited to the equity of overseas subsidiaries (such as Evergrande Automobile and Evergrande Property), which are not limited to but not directly or indirectly held, and Evergrande's overseas debt claimers can pursue assets pursued according to the applicable laws and regulations. Essence

In the announcement, Evergrande emphasized that in order to ensure fairness, the corresponding composition of the asset packets of each group of debt will be based on the legal structure of overseas debt, that is, the arrangement of the relevant asset package will fully consider the company's assets and liabilities levels, cash flow analysis, analysis of cash flow analysis, and the analysis of cash flow analysis. The company's loan structure, the contract and legal priority order of various claims, and any support from Evergrande's shareholders.

The scope of overseas debt that is proposed to reorganize includes: US dollar priority bills, Jingcheng Co., Ltd. and Tianji Holdings Co., Ltd. provide guarantee, Evergrande Real Estate Group Co., Ltd. provides the US dollar priority notes with good and equity acquisition commitments; Evergrande and Evergrande and Evergrande Other overseas debts of overseas subsidiaries (including the guarantee and repurchase obligations undertaken by Evergrande may have debt, such as RV treasure -related equity repurchase obligations, etc.).

In the announcement, Evergrande also disclosed recent business progress.

In the first half of 2022, Evergrande achieved contract sales of RMB 12.26 billion and contract sales area of ​​1.193 million square meters.

Evergrande stated that it spared no effort to maintain stability of production and operation, and worked hard to promote the resumption of work and re -production, and effectively safeguard the legitimate rights and interests of the buyer and creditors.

As of now, 96%of Evergrande's unopened projects have been partially or all resumed, and the actual construction person has reached 86%of the group's normal construction requirements. Since July 1, 2021, the company has completed a total of 224,400 units and the construction area, with a construction area of ​​23,476,200 square meters.

In terms of new energy vehicles, Evergrande's independently developed New Energy Vehicle Hengchi 5 Automobile was officially launched at the beginning of this year. In March, it was announced through 353 new products of the Ministry of Industry and Information Technology. Pre -sale was officially started on July 6, and so far, a total of more than 37,000 pre -sale orders have been received.

- END -