China Evergrande has announced the cancellation of the scheme meeting scheduled for September 25 and 26 as the beleaguered property developer deems it necessary to reevaluate the terms of the proposed restructuring, as reported by Echha Jain for Reuters.
An Evergrande Group project in Guiyuan Road, Shenzhen, China. I Photo: Dinkun Chen Wikimedia Commons
Evergrande had initially revealed plans for the restructuring of its $22.7 billion in offshore debt on March 22. However, the company stated that its sales have not met expectations since then.
In a filing, the company stated, "Based on the company's current situation and consultations with its advisors and creditors, the company considers it necessary to reassess the terms of the proposed restructuring to align with the company's actual circumstances and the demands of its creditors."
To approve the plan, Evergrande requires approval from more than 75% of the holders of each debt class.
The plan offers creditors various options to exchange debt for new bonds and equity-linked instruments backed by its stocks and those of its Hong Kong-listed units.
With total liabilities exceeding $300 billion, including offshore debt, Evergrande has been at the center of a property debt crisis. This crisis has seen several Chinese developers default over the past year, prompting many to engage in debt restructuring negotiations.