Evergrande gets a reprieve from court hearing as it seeks revised debt plan 

In a significant development, China Evergrande Group, one of the world's largest real estate developers, has asked a Hong Kong court five-week more weeks to develop a viable solution with its creditors. Facing the future threat of liquidation, the company has announced a revised debt restructuring plan.

The court adjourned the hearing to December 4, the date is now a critical deadline for Evergrande to present an actionable restructuring proposal. Failure to do so could prompt the court to proceed with liquidation. Justice Linda Chan spoke of the requirement for a "concrete" plan, emphasising the potential for the company to face winding up should such a proposal not materialise by the specified date.

Evergrande's dilemma curbs from debt that exceeds $300 billion, leading to its default on offshore debt in late 2021, setting off a ripple effect within China's property sector. The situation worsened when the company's founder, Hui Ka Yan, faced a criminal investigation last month, interfering with a $23 billion offshore debt restructuring plan.

As a result of the inquiry into its flagship property unit, mainland regulators banned Evergrande from issuing new dollar bonds to stabilise its financial standing.

Sources reveal that Evergrande had started discussions with certain bondholders regarding a fresh restructuring proposal over the past fortnight. The revised plan supposedly results in enabling bondholders to convert their bonds into equity and bonds tied to two of its listed subsidiaries, Evergrande Property Services Group and Evergrande New Energy Vehicle Group. Notably, this new proposition no longer includes issuing new notes by China Evergrande.

However, the company's challenges are reflected in its stock performance, with shares plunging by 9.8 per cent on Monday. The vision of a liquidation process reveals Evergrande, which, despite its vast asset base of $240 billion as of June, could impact global markets if it emerges. Neil McDonald, representative of a major bondholder group, conveyed the urgency spoken by the court for a viable restructuring plan that aligns with creditors' interests.

(With inputs from Reuters)

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