China Evergrande Group will announce a debt restructuring proposal by the end of July, the embattled property developer told investors on a call on Tuesday.
A wave of defaults in China’s property sector has rattled investors and while state intervention has quelled market concern over a disorderly collapse of Evergrande, investors are still in the dark over whether they will recoup their money. Chen Yong, a member of the committee, told investors on Tuesday Evergrande would announce a restructuring proposal by the end of July.
Under the plan, CITIC will return the land used as collateral to Evergrande, which will then pass it on to the Guangzhou city government to put up for sale, the sources said. Trust companies, which pool money from wealthy investors, are an important source of funding for Evergrande and other property developers in China.