Global funds that invested in China Evergrande’s bonds have come up with their own debt restructuring plan for the cash-strapped property developer and demanded that its chair repay liabilities with his own fortune, according to two people familiar with the matter.
Frustrated bondholders submitted a proposal that laid out a framework to restructure Evergrande’s $20bn of offshore debts in recent days after the company missed a self-imposed deadline in July to present a plan to meet its colossal liabilities, the people said.
The struggling real estate developer, which has $300bn of total liabilities and was the most prominent default last year in a liquidity crisis that shook the Chinese property sector, had told creditors it was on track to meet the July deadline. It urged patience amid threats of legal action.