In a letter to employees on New Year's Day, Hui expressed confidence that the firm could repay all its debt. China Evergrande Group is currently grappling with over $300 billion in liabilities and undergoing debt restructuring. The company, the world's most indebted property developer, has been struggling to repay creditors and suppliers and complete projects.
China Evergrande Group Resumed Construction on 732 Projects in 2022
Hui said in his letter that the company had resumed construction on all 732 projects across China in 2022, delivering 301,000 homes. This compares to 631 projects and 256,000 units in the first 11 months, according to a company filing from last month. Despite these efforts, the firm's December filing stated that its operations still face significant challenges due to its substantial liabilities. There is significant uncertainty on whether the resources for debt repayment will generate the expected value, creating differences between the group and its creditors on the terms of the debt restructuring plan.
China Evergrande Group Seeks Creditor Approval for Debt Restructuring Proposals
Evergrande is aiming to secure creditor approval for its debt restructuring proposals by the end of February, according to the company. The company's efforts to fulfill home delivery to buyers and repay its debt will be crucial in the coming year as it navigates the challenges posed by its substantial liabilities.