China’s Evergrande has continued to sell the piece of undeveloped land in Hong Kong to which its lender had appointed a receiver, Reuters reported on Feb. 4. 

A source familiar with the matter said the debt-laden company would use the funds from the transaction to pay off its creditor—U.S.-based Oaktree Capital. Evergrande will reclaim the remaining proceeds. 

The land put on sale is situated in the rural Yuen Long district of Hong Kong. The Financial Times on Jan. 26 reported that Oaktree Capital, an asset management firm, had appointed a receiver to the plot as Evergrande defaulted on a secured loan from it. 

Evergrande had previously said that the plot in Yuen Long was held as collateral for a $520 million loan made to the group in January 2021. It had been dedicated to its Versailles mansion project, which expanded to 2.2 million square feet in size.

Following the seizure, the embattled developer would have been unable to sell the plot to raise cash as part of its restructuring. 

A source told Reuters that the appointment of a receiver would have no impact on the company’s restructuring efforts. However, Evergrande said in an exchange filing on Jan. 30 that it had also contacted its lender, which purportedly was Oaktree.

Overseas bondholders of Evergrande had been particularly anxious about the cash-strapped developer’s attitude when it comes to its restructuring plan. 

On Jan. 20, a group of them hired law firm Kirkland & Ellis and investment bank Moelis to discuss legal actions over concerns about their rights. Via the law company, they said Evergrande had “disregarded” them in the plan to resolve its massive debt load and warned that enforcement actions were what they would “seriously consider.” 

Evergrande issued a statement in both Chinese and English on its official website on Jan. 24, asking international creditors to hold back on the legal challenges, saying that it might jeopardize the company’s hard-won stability. The developer also requested more time to develop a debt risk resolution plan that protects all stakeholders’ interests.

Reuters reported on Feb. 4 that China’s Evergrande has continued to sell the piece of undeveloped land in Hong Kong to which its lender had appointed a receiver. 

A source familiar with the matter said the debt-laden company would use the funds from the transaction to pay off its creditor, which is US-based Oaktree Capital. Evergrande will reclaim the remaining proceeds. 

The land put on sale is situated in the rural Yuen Long district of Hong Kong. The Financial Times on Jan. 26 reported that Oaktree Capital, an asset management firm, had appointed a receiver to the plot as Evergrande defaulted on a secured loan from it. 

Evergrande had previously said that the plot in Yuen Long was being held as collateral for a $520 million loan made to the group in January 2021. It had been dedicated to its Versailles mansion project, which expanded to 2.2 million square feet in size.

Following the seizure, the embattled developer would have been unable to sell the plot to raise cash as part of its restructuring. 

A source told Reuters that the appointment of a receiver would have no impact on the company’s restructuring efforts. However, Evergrande said in an exchange filing on Jan. 30 that it had also contacted its lender, which purportedly was Oaktree.

Overseas bondholders of Evergrande had mainly been anxious about the cash-strapped developer’s attitude when it comes to its restructuring plan. 

On Jan. 20, a group of them had hired law firm Kirkland & Ellis and investment bank Moelis to discuss legal actions over concerns about their rights. Instead, via the law company, they said Evergrande had “disregarded” them in the plan to resolve its massive debt load and warned that enforcement actions were what they “seriously consider.” 
Evergrande issued a statement in both Chinese and English on its official website on Jan. 24, asking international creditors to hold back on the legal challenges, saying that it might jeopardize the company’s hard-won stability. The developer also requested more time to develop a debt risk resolution plan that protects all stakeholders’ interests.

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