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Evergrande asks for more time from offshore creditors after its board members resign

Real estate developer Evergrande has issued an announcement saying it “sincerely ask all offshore creditors to give us more time” and “refrain from taking any radical legal actions,” as the Wall Street Journal reported.

The call came after its overseas bond investors alleged that Evergrande had been vague about its liabilities and failed to consult opinions from creditors in its restructuring plan. As a result, they said the Chinese developer left them no choice but to resort to legal action to protect their legitimate interests. 

In an English announcement published late Jan. 24, the embattled developer said that it was engaging overseas creditors in the formulation of the debt restructuring plan. But due to the large scale of related businesses and stakeholders, its financial situation had become increasingly complicated.

Evergrande said it needed more time to evaluate the plan before engaging debt holders in the process. 

Evergrande sought support from the creditors and said any legal action would “have an impact on the current hard-won stability.”

The company also made a significant announcement on Jan. 23, saying Lai Lixin and Huang Xiangui had stepped down as executive directors. However, both will remain in the group.

According to Reuters, Huang Xiangui resigned due to health reasons, while Lai wanted to focus on other fields at Evergrande. 

Filling in the seats, the current Executive Director and Chairman of Evergrande Auto, Xiao En, has been appointed executive director. Liang Senlin, Asset Manager of Evergrande’s subsidiary China Cinda Hong Kong Holdings, took the non-executive director position.

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