HONG KONG, Oct 31 Reuters China Evergrande is trying to stave off liquidation by revising its debt restructuring plan, but its biggest challenge will be convincing its creditors, and shareholders in two of its units, that the proposal is worth their while.

A Hong Kong court on Monday gave Evergrande, the world39;s most indebted property developer, a five week reprieve to come up with a deal. The company, which has more than 300 billion of liabilities, defaulted on its offshore debt in late 2021 and became the poster child of a debt crisis that has since engulfed China39;s property sector.

Evergrande39;s lawyer said the company was working on a revised plan to monetise the value of its two Hong Konglisted units Evergrande Property Services Group and Evergrande New Energy Vehicle Group NEV.

Sources familiar with the matter told Reuters that plan included allowing Evergrande creditors to swap their debt into equity and bonds tied to these units.

Evergrande, Evergrande Property Services and Evergrande NEV declined to comment.

For the plan to proceed, shareholders in both units will need to approve issuing new bonds and a large volume of new shares, a feat restructuring experts said would be timeconsuming and difficult to achieve.

Any process to issue new debt would need to take account of the interests of the other shareholders in those subsidiaries, said Mat Ng, a managing director specialising in restructuring at Grant Thornton Hong Kong.

Why would those…