In a race against time, embattled Chinese real estate titan, Evergrande Group EGRNF, scrambles to strike a deal with its major foreign creditors, desperately seeking to avoid the impending liquidation of its offshore operations set for Monday.

Following the collapse of a previous restructuring attempt thwarted by Chinese regulators, the proposed eleventh-hour deal entails Evergrande offering its creditors about 20% ownership of its parent company.

Compliant with Chinese regulatory demands, the stipulation dictates that Evergrande refrains from issuing new debt as part of its restructuring efforts.

Furthermore, ongoing negotiations with NWTN, a Dubai-based electric vehicle company, regarding potential investment in Evergrande’s EV division, add an additional layer of complexity to the tumultuous situation.

Earlier commitments from NWTN to inject $500 million for a 28% stake in Evergrande Auto were temporarily halted when the previous restructuring plan disintegrated, as highlighted by the Wall Street Journal.

Since defaulting in late 2021, Evergrande has been at the epicenter of China’s escalating real estate crisis, contending with massive debts, unfinished home deliveries, and obligations to numerous suppliers. Chinese regulators’ prior obstruction of an offshore debt restructuring and turnaround strategy has set the stage for the ongoing high-stakes negotiations.

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