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HK is where the foreign debt is. This is freeing the Chinese business of its obligations of $25B in foreign debt. Presumably that makes for a better business.
by onlyrealcuzzo 3y ago
HK is where the foreign debt is.
This is freeing the Chinese business of its obligations of $25B in foreign debt.
Presumably that makes for a better business.
Who knows. Evergrande could easily be worth less than -$25B. No one wants to buy a business worth negative money. But it's definitely worth less negative money now.
- bozhark 3y ago[flagged]
- cm2187 3y agoIf evergrande is the parent company, I don't think a restructuring of its own debt affects the debt of its subs, so the chinese sub would still be liable for the funding it borrowed from the parent unless it is itself restructured. If you borrow money from a bank and that bank goes bust, you still owe the full balance based on the initially agreed repayment schedule, it is just that your loan is now an asset contributing to the recovery of the bank's own creditors.