By P.R. Venkat
China Evergrande Group is aiming to announce a preliminary restructuring plan by the end of July, a possible sign that the real-estate developer is on track to address its financial woes.
"The company is actively pushing forward with its restructuring work," Evergrande, which has defaulted on several of its commitments to foreign bondholders, said Monday.
Evergrande said that it is also taking appropriate steps to comply with Hong Kong exchange rules in order to avoid a possible delisting of its shares.
Shares of the developer have been suspended since March 21. The Hong Kong stock exchange may cancel the listing of any securities that have been suspended from trading for a continuous period of 18 months.
The property giant had amassed around $300 billion in liabilities as of last June, including around $20 billion in outstanding U.S. dollar bonds.
Evergrande has struggled to meet its obligations since the summer, and has missed final deadlines for interest payments on several U.S. dollar bonds. All three major credit-rating companies have declared it to be in default.
Late last year, Evergrande said it had turned to its provincial government for help in dealing with its liquidity crisis.
The government of Guangdong is helping the company manage its risks, and Evergrande has set up a risk-management committee that includes its top executives and representatives of several state-backed entities.
Write to P.R. Venkat at email@example.com
(END) Dow Jones Newswires