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China debt crunch

Frustrated Evergrande bondholders push own plan for debt restructuring

Foreign creditors say chair Hui Ka Yan should repay some of $20bn liabilities from his fortune

Evergrande, which has $300 billion of total liabilities, was the most prominent default last year in a liquidity crisis that shook the Chinese property sector.   © Reuters

HONG KONG (Financial Times) -- Global funds that invested in Evergrande's bonds have come up with their own debt restructuring plan for the cash-strapped property developer and demanded that its chair repay liabilities with his own fortune, according to two people familiar with the matter.

Frustrated bondholders submitted a proposal that laid out a framework to restructure Evergrande's $20 billion of offshore debts in recent days after the company missed a self-imposed deadline in July to present a plan to meet its colossal liabilities, the people said.

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