Heavily indebted Chinese developer Evergrande proposes debt restructuring

A Chinese real estate developer whose struggle to manage more than USD 300 billion in debt rattled global financial markets announced a long-awaited plan on Thursday to restructure what it owes to foreign bondholders.

The Evergrande Group, the global real estate industry's most heavily indebted company, ran short of cash after Beijing tightened controls on corporate debt the ruling Communist Party worries is dangerously high. Some other Chinese developers collapsed, leaving half-finished apartment blocks standing empty.

Evergrande's struggle prompted fears about possible shockwaves for the global financial system. The Chinese central bank tried to reassure investors, saying its problems could be controlled and were unlikely to spill over.

A deputy central bank governor, Pan Gongsheng, said this month the real estate industry finally was recovering following a wave of defaults. Pan said financing conditions for healthy developers had improved significantly.

Evergrande's plan would .