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China Evergrande (OTC:EGRNQ) said on Monday that the court hearing for a liquidation petition has been postponed again, this time to January 29.
The ruling was made after the struggling real estate developer requested an adjournment, with no objection from the petitioner’s attorney. This would give Evergrande (OTC:EGRNQ) more time to complete a revised debt restructuring package.
Evergrande (OTC:EGRNQ) had proposed transitioning offshore bondholders’ debts into a 30% equity stake in each of its units Evergrande Property Services (OTC:EVGPF) and Evergrande New Energy Vehicle Group (OTC:EVGRF).
“If Evergrande (OTC:EGRNQ) fails to deliver an improved restructuring plan that meets the demands of the ad hoc group of creditors, the Hong Kong court is very likely to grant a winding-up order against the company,” said Lance Jiang, partner at law firm Ashurst LLP.
Evergrande (OTC:EGRNQ) shares jumped 9% on the Hong Kong stock exchange on Monday after the announcement.
Evergrande (OTC:EGRNQ) defaulted on offshore debt in late 2021 and is said to be the world’s most indebted developer with more than $300B in liabilities.
