China's Most Indebted Property Developer Loses $2B Value After Shares Resumed Trading
Portfolio Pulse from Lekha Gupta
China Evergrande Group (OTC:EGRNF) has extended the creditors' voting record time related to its offshore debt restructuring plan. The company lost around 80% of its market value, equivalent to $2 billion, after shares resumed trading on August 28. Evergrande seeks approval from over 75% of the holders of each debt class to support the plan, which offers creditors options to swap debt for new bonds and equity-linked instruments. The company has been in crisis with debt defaults, unfinished homes, and unpaid suppliers. Evergrande reported an H1 FY23 net loss of RMB(33.0) billion ($4.53 billion), which narrowed from RMB(66.4) billion a year ago on higher revenues.
August 28, 2023 | 10:52 am
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China Evergrande Group's shares lost 80% of their value after resuming trading. The company is in crisis with debt defaults and unpaid suppliers, and is seeking approval for a debt restructuring plan.
The news of Evergrande's debt crisis and the extension of the creditors' voting record time for its debt restructuring plan has negatively impacted the company's stock price. The company's shares lost 80% of their value after resuming trading, indicating a lack of investor confidence. The company's financial instability and the uncertainty surrounding its debt restructuring plan are likely to continue to negatively impact its stock price in the short term.
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