Evergrande Group announces long-awaited debt restructuring deal after 2021 collapse | CNN Business

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China’s Evergrande Group, whose collapse in 2021 sparked China’s worst property market crisis on record, has unveiled a multi-billion dollar restructuring plan to make peace with its international creditors

. The long-awaited plan could set an important precedence for investors dealing with the growing defaults and restructuring in China’s real estate industry. With more than $270 billion in total liabilities, Evergrande’s debt restructuring is also the country’s largest on record and will have broad implications for its financial markets.

The company also warned its electric vehicle unit would face the risk of shutdown without new funding. If the unit can obtain over 29 billion yuan in financing, it plans to launch a number of flagship models and achieve mass production. Evergrande was once China’s largest developer by sales. But it had borrowed so heavily that when China cracked down on leverage in the property sector in 2020, it failed to raise enough cash to repay creditors and suppliers.

 

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