'Another debt restructuring attempt by the world's most indebted firm.'
China Evergrande Group has agreed to pay an advisory fee to a pool of bill holders who worked with a property promotion firm that was short on cash during the debt restructuring.
Creditors advised by Moelis & Co and Kirkland & Ellis started preparations for negotiations last October, after Evergrande suspended the payment of benefits to an offshore bill and reported plans for the sale of certain assets.
Meanwhile, a representative from Houlihan Lokey Inc, who is also an advisor to the firm, was seen as reluctant to comment.
In general, the Evergrande debt crisis has attracted worldwide attention because it gives the impression of greater risk in China's real estate sector.
With liabilities of US$300 billion, Evergrande is indirectly the giant firm with the most debts in the world.
Meanwhile, last Tuesday the Wall Street Journal reported details on the fee-paying agreement, which is the standard setting in most US debt restructurings.
Evergrande's offshore debt is now trading for a few cents on the dollar in a weak outlook for restructuring.
The firm's 9.5% 2024 note, debt that is subject to pending payments in October, traded 13 cents on the dollar.
