After three trading days of suspension, on the morning of November 1st, Xuhui Holdings Group, a Chinese real estate company, announced that it will suspend the principal and interest on overseas debt and seek a comprehensive solution for overseas debt.According to the analysis, Xuhui is one of the demonstration private housing companies, and has obtained the financing department to support the issuance of relevant bonds many times.This time has been forced to announce the default of overseas debt, and further reflects the liquidity dilemma faced by Chinese private housing companies.
According to the First Financial Report, since October, rumors about Xuhui's overseas debt have continued. In the middle of the month, Xuhui said that he was actively communicating with creditors.However, Xuhui mentioned in today's announcement that the creditors who have not reached a debt in October have reached an agreement. "Therefore, the company regrets the discussion of the groups of individual individual creditors or creditors."
At the same time, in order to ensure fair treatment of all overseas bonds, Xuhui claimed that all the principal and interest should be paid all of all overseas financing.Among them, Xuhui is expected to continue to pay several mortgaged project loans.
In fact, before the overseas debt in October this year, Xuhui has always fulfilled the repayment obligation of all overseas debts.According to disclosure, since 2022, Xuhui has paid a total of approximately $ 1.5 billion (S $ 2.121 billion) to overseas bonds.
In the same period, Xuhui only received about $ 500 million in new overseas financing.This also means that Xuhui has rely on internal cash resources on overseas debt repayments, but this is increasingly difficult in the context of increasingly worsening financing and operating environment.
Since September, the Chinese real estate market has further deteriorated and sales have been weak.Xuhui said that the deterioration of cash flow of the group exceeded expectations. At the same time, some financing also triggered the advance payment terms due to rating, and the overseas payment pressure increased in the short term.
As of November 1, Xuhui's total overseas debt total a total of approximately US $ 6.85 billion, and the total principal and interest due to maturity was about 414 million US dollars."Even if the Group is doing its best, it may continue to be under pressure, and it is impossible to generate sufficient cash that the current and future obligations need."
At the end of September, the chairman of the Board of Xuhui HoldingsWhen talking about the pressure of funds in the letter, the "disconnection of the tide" in July has allowed many governments to further tighten the extraction of regulatory funds, which has led to further pressure on the liquidity of housing companies. "This also objectively causes us to cause usAlthough there are still more than 30 billion cash on the book, most of them cannot meet the reasonable use of the enterprise. "
So Xuhui currently choose to suspend the principal and interest of payment and discuss comprehensive solutions on the status quo.According to the announcement, Xuhui currently hires Haitong International to serve as a financial adviser and the Nianlida Law Firm as a legal adviser to talk to foreign creditors.
While starting the reorganization of overseas debt, Xuhui emphasized that it will fully guarantee, insurance operations and maintenance of domestic financing, and at the same time, "the problem of overseas debt has no significant impact on domestic financing."
