The developer cancelled four meetings for two classes of its creditors in Hong Kong and the Cayman Islands set for September 26, according to an exchange filing late on Friday. Two meetings on September 25 for another group of bondholders in Hong Kong and the British Virgin Islands were also halted.
“The sales of the group have not been as expected,” it said. “Based on the current situation and consultations with its advisers and creditors, the company considers it necessary to reassess the terms of the proposed restructuring to meet the objective situation and the demand of the creditors.”
Evergrande is seeking to reorganise US$20 billion of defaulted debt and claims in the largest ongoing workout by a Chinese company. The developer, which had 2.4 trillion yuan (US$327 billion) in total liabilities on June 30, offered new bonds, convertible debt and stakes in its property management and car-making units to appease creditors.
Under its restructuring timetable, Evergrande aims to lock creditors into full agreement by October 1 and conclude the process by December 15. The company last month filed for Chapter 15 protection in the US Bankruptcy Court to give its workout a global effect and recognition.
Earlier this month, authorities in Shenzhen detained several executives from its wealth management unit. Evergrande said the “imposition of criminal coercive measures” against its personnel will not affect its operations.