Evergrande's offshore debt, assets could be separated in restructuring

The provincial government leading Evergrande Group's restructuring wants to separate the company's offshore assets and sell them to pay off foreign debt, a media report said on Friday, in a boost to foreign lenders' hopes of recouping funds.

Financial intelligence provider REDD said the government in Guangdong, where Evergrande is based, aimed to release a framework debt restructuring plan by March that could also wipe out the 60% stake of the group's chairman.

Citing two sources, REDD said the provincial government was proposing state-led investors should buy Evergrande assets and that proceeds from the sale of foreign assets should be used to pay offshore debt.