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Evergrande wants to use onshore assets as a sweetener for reorganising its offshore debt.

Hong Kong Two people with knowledge of the situation told Reuters that China Evergrande Group plans to use domestic assets as bribes to get overseas creditors to agree to a long-awaited debt restructuring plan.

People say that Evergrande, which has $300 billion in debts, plans to start reorganisation talks next month and is looking through its onshore assets to find ones that can be used to give holders of its U.S. dollar-denominated bonds more credit.

Evergrande was once China’s best-selling real estate developer, but it is now at the centre of a deepening property debt crisis. Over the past year, a number of developers have stopped paying their overseas debts, forcing many of them to try to restructure their debt.

Related: Evergrande of China delivers the first electric vehicles.

Developers are having trouble getting the money they need to finish projects and pay their suppliers. Last week, the government told financial institutions to do things like give loan repayment extensions to help ease the liquidity crunch.

After missing payments late last year, Evergrande’s $22.7 billion in offshore debt, which includes loans and private bonds, is considered to be in default. Evergrande started one of China’s biggest debt restructuring processes this year because it had few new ways to get money and property sales were slowing down.

Most Chinese developers, like Evergrande, which is the most indebted company in the world, don’t have many assets overseas that they can use to restructure their debts. If the plan to use onshore assets goes through and offshore bondholders agree to it, Evergrande would be the first Chinese developer to use onshore assets to improve the chances of investment recovery for offshore bondholders.

Evergrande will sign non-disclosure agreements with bondholders this month to get ready for negotiations next month. The terms will be finalised early next year, said one of the people, who did not want to be named because they were not allowed to talk to the media.

Evergrande declined to comment.

Look for assets

Evergrande gave a restructuring update in July that was short on details but confirmed a Reuters report that it would offer offshore creditors asset packages that may include shares in two Hong Kong-listed units as a sweetener.

It said that it expected the due diligence work on the group to be finished soon after the update and that it planned to announce a specific plan for restructuring before the end of the year.

A person who knew about the plan at the time told Reuters that the goal was to present a plan that key creditors would agree to by November.

Two people said that Evergrande and bondholders are now trying to figure out what onshore assets could be used to boost credit.

Related: China Evergrande is being sued to finish a deal commitment worth $110 million.

A third person close to the developer said that it will be hard to find such assets because Evergrande has given most of its assets to onshore creditors and groups like local governments.

Offshore, creditors have taken over its biggest assets in Hong Kong.

A winding-up petition filed by an investor in June is another problem. If it works, it could change Evergrande’s plan to restructure by making its overseas assets less valuable. One of the people said that the developer plans to ask for a break at the next hearing on November 28.

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