evergrande
- Thread starter Pyrexcup
- Start date
So where are we at with this?
All I see are payment extensions being offerred
All I see are payment extensions being offerred
Vandelay
Life is absurd. Lean into it.
Stopped follwoing this but didn't they say the collapse was happening last year?
All this doom and gloom?
All this doom and gloom?
they got like $300 billion dollar in bond debt, theres no telling how much other debt they have. they been missing payments for months now, so this is clearly a slow boiling situation.
HONG KONG, June 2 (Reuters) - Fitch Ratings said on Thursday it has decided to withdraw its rating on embattled property developer China Evergrande Group (3333.HK) and two of its subsidiaries as the firms have stopped participating in the process.
The rating agency in December downgraded Evergrande and its subsidiaries, Hengda Real Estate Group Co Ltd and Tianji Holding Ltd, to so-called "restricted default" status, saying the firms had defaulted on their offshore bond obligations. read more
In its statement on Thursday, Fitch said that it would no longer have sufficient information to maintain the ratings on Evergrande, the world's most indebted developer with more than $300 billion in debt, and two of its subsidiaries.
"Accordingly, Fitch will no longer provide ratings or analytical coverage for Evergrande and its subsidiaries," it said.
Evergrande, which has struggled to repay suppliers and complete housing projects, has become the poster child of China's property sector crisis as it lurched from one missed offshore debt payment deadline to another. read more
The firm is considering repaying offshore public bondholders owed around $19 billion with cash instalments and equity in two of its Hong Kong-listed units, Reuters reported last month, as the developer struggles to get back on better footing.
Its $22.7 billion worth of offshore debt including loans and private bonds is deemed to be in default after missing payment obligations late last year. It said in March that it will unveil a preliminary debt restructuring proposal by the end of July.
Late last year rating agencies including S&P downgraded Evergrande to "selective default" after missed offshore debt payment.
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Dr. Marco Metzler
Managing Founder at Dr Metzler Rating Consulting6h
Evergrande's default now finally confirmed by paying agent Citibank! and Evergrande discusses staggered payments, debt-to-equity swaps for $19 billion offshore bonds Evergrande is officially broke! Just this week, I received an official letter from the agent Citibank that Evergrande has defaulted on our bond and I will never see my money again. As you know, I had bought bonds last year in November to see if the media coverage of the real estate giant was accurate, as they repeatedly reported that Evergrande was doing well.
Unfortunately, it appears this media coverage is taking its course. The zombie Evergrande company just last week made another empty promise to pay off its $19 billion debt with small cash payments and shares of two of its Hong Kong units. How is that supposed to be possible, please, when now even the agent Citibank says they are broke?
According to Reuters, a preliminary debt restructuring proposal should be ready by the end of July. In the proposal, apparently Evergrande wants to repay the interest in converting it into new bonds, which will then be repaid in installments over a period of seven to ten years. The debt is to be swapped for shares in the developer's Hong Kong-listed property services unit, Evergrande Property Services Group Ltd, and electric vehicle maker China Evergrande New Energy Vehicle Group Ltd.
Unfortunately, I'm afraid that's anything but better, as shares in Evergrande Property Services and Evergrande New Energy Vehicle, as well as the parent company, have been suspended for about two months. None of the companies have reported their 2021 financial results yet, as audit work is still ongoing. The property management unit has even been under internal investigation since March as well to find out how banks seized its 13.4 billion yuan in deposits pledged as collateral for third-party guarantees.
In addition, of course, it is not clear how Evergrande will be able to raise enough cash to implement its repayment plan. The company reported a 39% year-on-year decline in sales in 2021. Yesterday, Fitch withdrew their ratings on Evergrande and their Subsidiaries, Hengda and Tianji. Thereby, they have chosen to stop their participation in the rating process. The result of this is that Fitch will no longer provide the ratings and the analytical coverage for Evergrande and its subsidiaries.
oh just the usual corporate welfare bailouts and finessing
