According to Sound of Hope, China’s debt-laden Evergrande property group plans to restructure its offshore public bonds and private debt. The change was China’s most remarkable asset restructuring of all time.

Evergrande announced that it had encountered difficulties paying a $260 million guaranteed offshore bond on Dec. 3. The company still has about $19.2 billion in outstanding offshore public bonds and $8.4 billion in local notes.

According to the documents submitted by Evergrande to the Hong Kong Stock Exchange, the company’s board of directors established a risk management committee with five members from outside the company after the Guangdong Province government announced they had sent a group to deal with the company’s problems.

A source revealed that Evergrande included all debts in the restructuring process. The movement was considered an act to calm the market. The source admitted the restructuring process has yet to start, and plans could be changed.

Evergrande’s restructure announcement has led to its market value fall historically by 20% in Hong Kong stocks at the beginning of this week. At the same time, its U.S. dollar bonds also recorded the most significant decline in history.

Ren Shuili, a Bloomberg Opinion columnist covering Asian markets, warned the Chinese real estate developers that if they tried to pay the debt, they might face negative economic consequences.

Evergrande’s contract sales fell by 93% year-on-year in November. Real estate developers like Fantasia had to file for liquidation after defaulting in October, which meant that companies with debt problems were on the verge of danger.

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