Evergrande Signs Restructuring Agreement With Major Creditors

The debt restructuring for Evergrande, the developer central to China’s property crisis, is one the country’s largest ever and carries broad implications for its financial system. Photo: Bloomberg

(Bloomberg) — China Evergrande Group said it’s clinched an offshore restructuring deal with a key creditor group, laying a cornerstone in the developer’s debt-overhaul road.

Members of an ad-hoc group of investors holding Evergrande offshore notes signed three restructuring support agreements, according to a Hong Kong stock exchange filing Monday night. Creditors will receive a consent fee for 0.25% of outstanding principal of the respective debts if they agree to the proposal by 5 p.m. Hong Kong time on April 27, the firm added.