Advisors representing China Evergrande are reportedly meeting the advisors of offshore bondholders for talks following weeks of silence from the debt-laden property developer.
A non-disclosure agreement was signed by company advisors Houlihan Lokey Inc. and Admiralty Harbour Capital alongside offshore bondholder advisors Moelis & Co. and Kirkland & Ellis, according to a «Bloomberg» report citing unnamed sources, after earlier outreach attempts were declined.
The meeting is intended to act as means to exchange information including the status of various projects, liquidity and asset valuation.
This marks a turn of events after Evergrande stayed silent over its offshore dollar bonds, though it did recently avoid a default by making an overdue $83.5 million payment before the expiry of a grace period.
Founder Wealth
As more payment deadlines approach, Chinese authorities – including officials National Development and Reform Commission and the State Administration of Foreign Exchange – have been urging developers to make payments for offshore bonds on time if possible, according to a separate «Bloomberg» report, and, if not, inform regulators immediately.
Even Evergrande founder Hui Ka Yan has been asked to tap into his private wealth to support the situation though it is unclear if his fortune has sufficient size and liquidity.
