On Monday, Hong Kong’s High Court granted China Evergrande Group’s request to postpone a winding-up case against it until November 7. An investor filed the suit in June after the developer failed to honor a $110 million buyback deal.
If the petition is granted, it may have an impact on EverGrande’s debt restructuring plan. Evergrande failed to meet a self-imposed deadline to submit a reorganization proposal by the end of July.
The developer’s total offshore debt of $22.7 billion, including loans and private bonds, is regarded to be in default. Earlier this year, it initiated discussions with offshore creditors regarding the restructuring proposal. In a June filing, the corporation stated that it will “vigorously” contest the winding-up litigation.