Opinion: Evergrande Offshore Bondholders Must Think Carefully About Their Own Exposure

On June 27, Top Shine Global Ltd. (of Intershore Consult (Samoa) Ltd.) filed a winding up petition against China Evergrande Group, or Evergrande, in the Hong Kong High Court based on claims that the property developer failed to honor a claim for HK$862.5 million ($110 million). The hearing is scheduled to be heard on Aug. 31 August.

In response, Evergrande maintained that the petition would not impact its restructuring plans or timetable, originally promising the release of a preliminary restructuring plan for its offshore debt by the end of July 2022. To the dismay of its creditors, however, the company recently postponed its initial deadline, instead announcing its intentions to release the plan “within 2022” to allow its creditors and their advisors to complete “due diligence of the Group’s core business.”