China Evergrande Group canceled key creditor meetings that had been set for early next week and said it must reassess its proposed restructuring, adding further uncertainty to what would be one of the nation’s biggest ever restructurings.
The distressed developer cited sales that have “not been as expected,” in scrapping the so-called scheme meetings that had been planned for Sept. 25-26, in an exchange filing Friday night.
“Based on the company’s current situation and consultations with its advisors and creditors, the company considers it necessary to re-assess the terms of the proposed restructuring to meet the company’s objective situation and the demand of the creditors,” it said.
Evergande didn’t provide a new schedule for the meetings, only saying it would make further announcements when there is an update.
The builder, at the heart of China’s broader property crisis, had previously postponed creditor meetings that were scheduled to begin Aug. 28. At that time it had cited a desire to let creditors “consider, understand and evaluate” the terms of the schemes and give them more time to consider recent developments, including a share trading resumption.
Earlier this month the company also revised, dates of the scheme sanction hearings to October.