TOKYO (BLOOMBERG) – China Evergrande Group's risk management committee plans to hire additional financial and legal advisers to help the embattled developer deal with its debt stress and respond to creditors' demands.
The panel proposes to engage China International Capital and BOCI Asia as financial advisers, and Zhong Lun Law Firm as a legal adviser, the company said on Friday (Jan 21) in a statement to the Hong Kong stock exchange.
The announcement came a day after a bond holder group said Evergrande had failed to substantially engage with it on restructuring efforts. The group said it will "seriously consider enforcement actions" to protect investors' interests and wants to be consulted before any further assets are sold.
Evergrande, saddled with US$305 billion (S$411 billion) of liabilities as at mid-2021, was deemed to be in default in December after missing dollar bond payments. It set up the risk management committee that month, saying it would "actively engage" with creditors to formulate a viable restructuring plan.
The advisers will help the company in "mitigating and eliminating" debt risks, follow up with creditor demands and deal with debt issues on a "fair and equitable basis", Evergrande said in its statement.