HONG KONG, March 23 Reuters China Evergrande Group39;s offshore debt restructuring proposal, a test of investor sentiment towards the cashsqueezed property sector, failed to impress because of its long repayment period and lack of enough sweeteners, creditors and analysts said.

Evergrande is the world39;s most indebted developer with around 300 billion in liabilities. Its offshore debt restructuring, the country39;s biggest such exercise, is aimed at saving it from a disorderly collapse.

The developer has 22.7 billion of offshore debt, all of which is deemed to be in default. The plan provided two main options to its dollar bondholders to recoup their investments.

Creditors can either swap all of their holdings into new notes with maturities of 10 to 12 years, or convert them into different combinations of new notes with tenors of five to nine years and equitylinked instruments.

Bondholders of notes issued by Evergrande39;s offshore units will also be allowed to exchange their existing debt for new notes, which will start paying coupons from the fourth year after issuance.

The outcome of Evergrande39;s debt revamp plan is likely to have a bearing on similar proposals being worked on by a string of other Chinese developers that have defaulted on repayment obligations in the last year.

An index tracking mainlandbased property developers slipped 0.5 in early afternoon trading on Thursday, while the broader stock benchmark index added 1.3. Trading in Evergrande shares…