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The
group, which owns about $2 billion in offshore notes guaranteed
by Evergrande, issued a statement late on Friday urging that
Hengda Real Estate, Evergrande’s flagship onshore unit, be
allowed to maintain operations to ensure completion of homes and
delivery of homes, the newspaper said.
"No stakeholders of Hengda, be it customers, suppliers,
creditors, or the (Chinese) government, would benefit from
forcing Hengda into a multi-year, value-destructive bankruptcy
process," it cited the statement as saying.
"Such a bankruptcy process would only detract from the common
goals of ensuring the prompt completion of projects and the
timely delivery of homes, as well as procuring the long-term
sustainability of Hengda as a going concern."
Evergrande, the world's most indebted property developer, and
the advisers to the creditor group did not immediately respond
to requests for comment.
The SCMP quoted the advisers, the Kirkland & Ellis law firm and
investment bank Moelis, as saying the creditors would "continue
working together with Hengda and its management to support their
efforts", adding there was "no benefit or upside" in any
bankruptcy of Hengda to the noteholders.
Evergrande has until the Hong Kong court hearing on Monday to
present a "concrete" revised debt restructuring proposal for
offshore creditors, a judge said last month after its original
plan had lapsed.
Reuters reported on Thursday that Evergrande this week sought to
avert liquidation with a restructuring proposal, offering to
swap some offshore debt into equity in the company and two Hong
Kong-listed units, and repay the rest with non-tradeable
"certificates" backed by offshore assets.
The creditors group responded by demanding a controlling equity
stake in Evergrande and the two Hong Kong subsidiaries, a source
familiar with the matter said on Friday.
(Reporting by Clare Jim; Editing by William Mallard)
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