U.S. media reports that it is difficult for Chinese real estate developers to reach an agreement with foreign bond holders at the moment, which has triggered the possibility of the court requesting the company to liquidate.
The Wall Street Journal reported that according to sales, Evergrande was once the largest real estate developer in China. In the tide of debt -driven expenditure, Evergrande issued more than $ 20 billion (below, about 27 billion yuan, about 27 billion yuanXinyuan) USD bond.The company had a foreign debt default at the end of 2021, and has since been in a difficult negotiation with international bond holders.
Reported that the latest controversy is -whether Evergrande should be allowed to use its assets outside China to repay the debt that occurs in the country.
People familiar with the matter said that Evergrande's creditors in mainland China are promoting the company's use of some assets in Hong Kong and other places to repay them, which makes them direct with the holders of Evergrande US dollar bonds directly.conflict.People familiar with the matter said that the holders of Evergrande US dollar bonds today include both non -performing assets and also large long -term institutional investors.
The company's representative will appear in the High Court of Hong Kong on March 20.In June last year, Evergrande was asked by a small creditors to clear the court.The above -known person said that Evergrande won the court's liquidation hearing extension at a hearing in November last year. The company may be postponed again, but since the last postponed, the negotiations have not made any progress.Evergrande must submit evidence before March 6 to persuade the judge to postpone it again.
International bond holders and Mainland China creditors scrambling claims is just one of the issues that China Evergrande needs to solve.The above -mentioned persons said that as international bond holders may be required to accept equity, newly issued bonds, or both accept them, China Evergrande will need to reach a certain agreement with their shares value.
The Chinese real estate market has slowed seriously in the past two years, partly because the government has introduced a policy to crack down on developers' excessive debt, that is, the so -called "three red lines".China Evergrande is one of the first victims of real estate downturn, and real estate landslides eventually led to dozens of US dollar bonds default.
In November last year, China reversed the rectification of the real estate industry, eliminated restrictions on debt financing, and encouraged state -owned banks to provide loans to the industry.This has prompted the secondary market price of some bonds in the industry to rise sharply. Some Chinese Evergrande competitors' stocks have also rebounded since they touched the low in October last year.China Evergrande's own stock has suspended trading since March 2022, and the stock has fallen by more than 90%since the beginning of 2020.
