Given the size of Evergrande, the number of its stakeholders and the “complexity of the situation,” the company “will need more time to fully consider, evaluate and assess comprehensively the number of potential solutions before it can responsibly further engage in substantive negotiations with offshore creditors,” it wrote in the filing.
This week is the second time Evergrande has tried to placate concerns among overseas creditors, who last Thursday said they had to “seriously consider enforcement actions” because the company failed to engage substantially with them about reorganizing operations.
The real estate developer is one of China’s largest and it’s still reeling under more than $300 billion of total liabilities, including about $19 billion outstanding offshore bonds held by international asset managers and private banks on behalf of their clients.
Analysts have been long concerned that a collapse by Evergrande could trigger wider risks for China’s property market, hurting homeowners and the broader financial system. Real estate and related industries account for as much as 30% of the country’s GDP.
Read More:Evergrande asks international creditors for more time and warns that legal action could be ‘destructive’