Indebted real estate giant China Evergrande Group reached agreements with its biggest offshore creditors about restructuring debt late last week.
In the agreement, the developer agreed to pay bondholders’ advisory fees. It promised to provide additional due diligence on its financial health and give creditors a formal role in the restructuring process.
Evergrande wants to prevent threats of taking over the company’s offshore businesses after some banks seized $2 billion of its offshore cash.
The Wall Street Journal cited Advantage Data, the company’s bonds are still trading at a deeply distressed level. Its bonds fell by approximately a cent due to the $2 billion seizure.
Evergrande was the most indebted Chinese developer, with nearly $300 billion in liabilities as of last June.