Share of China Evergrande Group tumbled on Thursday, as investors loose confidence on the company’s thinly detailed restructuring plan.
Evergrande has debt over $300 billion and struggling to repay creditors, suppliers, investors in wealth management products.
Late on Wednesday, Evergrande’s executives told creditors in a call it hoped to work with them to achieve a risk management solution, and it would treat all categories of creditors “fairly and follow international practice”. The company also urged creditors not to take any “aggressive legal actions.”
However, some bondholders were disappointed by the 25- minute call as the company failed to give insight on the restructuring plan.
Shares of the company dropped 9.6% to HK$1.60 ($0.2054), the lowest in nearly two weeks, at 0157 GMT.
