Advisers representing China Evergrande Group and a group of its offshore bondholders have taken steps toward debt negotiations as the developer faces a cash crunch, Bloomberg News reported, citing people familiar with the matter.
The company's advisers Houlihan Lokey and Admiralty Harbour Capital along with offshore bondholder advisers Moelis & Co and Kirkland & Ellis have signed non-disclosure agreements in preparation for potential talks, according to the report on Wednesday (Oct 27).
The advisers are seeking to exchange information with Evergrande including status of various projects, liquidity and asset valuation, after earlier outreach attempts were rebuffed, Bloomberg said.
Evergrande, Admiralty Harbour Capital, Moelis and Kirkland & Ellis did not immediately respond to Reuters' requests for comment. Houlihan Lokey declined to comment on the report.
China Evergrande Group, the world's most indebted property firm, is reeling under more than US$300 billion in liabilities, fuelling worries about the impact of its fate on global markets.