makinezmoney
1 year ago
$EGRNF: MASSIVE NEWS........... $3.2Billion DEBT REDUX PLAN
China Evergrande NEV shares jump on $3.2 bln plan to lower debt
Reuters
August 15, 20234:42 AM EDTUpdated 3 hours ago
China Evergrande New Energy Vehicle factory in Tianjin
A view of the electric vehicle (EV) factory of China Evergrande New Energy Vehicle Group in Tianjin, China October 20, 2021. REUTERS/Yilei Sun
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BEIJING/HONG KONG, Aug 15 (Reuters) - China Evergrande New Energy Vehicle Group (NEV) (0708.HK) shares jumped nearly 50% on Tuesday after the electric vehicle unit of cash-strapped property firm China Evergrande Group (3333.HK) announced a $3.2 billion plan to reduce debt and stay afloat.
The plan unveiled late on Monday includes a new share sale worth nearly $500 million to Dubai-based mobility firm NWTN (NWTN.O), which will take a 27.5% stake in Evergrande NEV.
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The overall package also includes a debt-for-equity swap of HK$20.89 billion ($2.7 billion) with its key creditors -- China Evergrande, its founder Hui Ka Yan, and his unit Xin Xin (BVI) Ltd, among others.
"The NEV Group will face the risk of discontinuation of business without access to a new round of significant funding," Evergrande said in a statement.
It said the fresh funding from NWTN would help the automaker improve its financial performance, while the strategic investor would bring its business and operational support to the company.
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Last month, Evergrande NEV posted its long overdue financial results and said a combined net loss for 2021 and 2022 amounted to nearly $10 billion.
The electric vehicle maker has been under pressure since its parent group descended into a debt crisis in mid-2021, and warned in March it might have to wind up operations unless it obtained new funding.
Concerns about China's fragile property market have deepened this month, as the country's largest private real estate developer Country Garden (2007.HK) missed coupon payments, flagged a loss of up to $7.6 billion for the first half, and sought to delay payment on a maturing bond.
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The NWTN investment, pending regulatory approvals and completion of the debt conversion package, will also give the Dubai firm the right to nominate a majority of Evergrande NEV's board.
NWTN, listed in the U.S. market, is working on several EVs but has yet to begin mass production, according to its 2022 annual report published in May.
The company has been preparing a manufacturing base in the eastern Chinese city of Jinhua and an assembly facility in Abu Dhabi.
After the deal is completed, China Evergrande's stake in the unit will be diluted to 46.86% and the automaker would cease to be a non-wholly owned unit of Evergrande.
Shares in Evergrande NEV jumped as much as 47% on Tuesday before paring down its gain to around 2%.
($1 = 7.8216 Hong Kong dollars)
Reporting by Roxanne Liu in Beijing and Clare Jim in Hong Kong; Editing by Miyoung Kim, Jamie Freed & Simon Cameron-Moore
GO $EGRNF
makinezmoney
2 years ago
$EGRNF: New Restrucutring Deal in Place....................
https://www.bbc.com/news/business-65047627
GO $EGRNF
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Embattled Chinese property giant Evergrande has announced plans for restructuring around $20bn (£16.2bn) in offshore debt, which could be seen as a model for other struggling developers.
The firm said the measures will help "efforts to resume operations and resolve issues on shore".
Evergrande has more than $300bn in liabilities and defaulted on its debts in late 2021.
The crisis has spooked traders who fear contagion in China's property sector.
"The proposed restructuring complies with international restructuring norms and best practices," Evergrande said in a statement to the Hong Kong Stock Exchange on Wednesday.
The firm added that it would "use its best endeavours to restore a healthy ecosystem of capital and business, repair its capital structure and stabilise its business operations".
Under the proposal, creditors will swap Evergrande bonds for new bonds and equity-linked investments backed by the company and two Hong Kong-listed subsidiaries.
Earlier this week, Evergrande said a key group of offshore bondholders had agreed to the proposal.
It plans to seek the approval of other bondholders by the end of this month, ahead of the restructuring on 1 October.
The company's overdue financial reports for 2021 and 2022 will also be released in the coming months.
Trading of its Hong Kong-listed shares will remain suspended in the meantime.
Evergrande, which is the world's most indebted property developer, was once China's top-selling developer.
The firm had expanded aggressively to become one of China's biggest companies by borrowing more than $300bn.
However, Chinese officials introduced new rules in 2020 to control the amount owed by big real estate developers.
This led Evergrande to offer its properties at major discounts to ensure money was coming in to keep the business afloat. It has since struggled to meet interest payments on its debts.
In December 2021, Evergrande missed a crucial deadline and failed to repay interest on around $1.2bn of international loans.
Major credit rating agencies declared Evergande in default, a move that could hamper restructuring talks with investors.
China's property market is under pressure from a slowing economy and a serious cash crunch. It accounts for around a third of economic output in the world's second largest economy.
makinezmoney
2 years ago
$EGRNF: Debt Restructuring plan laid out............
https://www.reuters.com/world/china/china-evergrande-set-unveil-offshore-debt-restructuring-proposal-2023-03-22/
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China Evergrande offers bond and equity swaps in debt restructuring
By Clare Jim and Xie Yu
China Evergrande races court deadline on debt restructuring terms - sources
The Evergrande Center of China Evergrande Group is seen in Shanghai, China September 24, 2021. REUTERS/Aly Song
HONG KONG, March 22 (Reuters) - China Evergrande Group (3333.HK) on Wednesday announced plans for the restructuring of its $22.7 billion in offshore debt, which could set a template for distressed rivals and shape investor sentiment on the country's embattled property sector.
The world's most indebted property developer gave creditors a basket of options to swap their debt into new bonds and equity-linked instruments backed by the group and its two Hong Kong-listed companies, Evergrande Property Services Group (6666.HK) and Evergrande New Energy Vehicle Group (0708.HK).
With more than $300 billion in total liabilities including offshore debt, Evergrande has been at the centre of a property debt crisis in which multiple Chinese developers defaulted over the past year, forcing many to enter debt restructuring talks.
While the long-awaited proposals could provide breathing space for the developer that was teetering on the brink of collapse a year ago, few analysts expect its balance sheet to recover fully any time soon.
"The proposed restructuring will alleviate the company's pressure of offshore indebtedness and facilitate the company's efforts to resume operations and resolve issues on shore," Evergrande said in the filing.
The developer expects the proposed restructuring to facilitate an orderly resumption of business operations and gradual generation of cash flow for debt repayment.
Court and arbitration cases involving 363.5 billion yuan ($52.83 billion) of debt are ongoing in mainland China, Evergrande said. On a standalone basis, these will not materially affect the offshore restructuring, it added.
In the two main options proposed, creditors can either swap all of their holdings into new notes with maturities of 10-12 years, or convert them into different combinations of new notes of five to nine years and equity-linked instruments.
The developer said it expects to agree restructuring support agreements with different groups of bondholders by March 31, with restructuring taking effect on Oct. 1.
Evergrande on Monday said that a key bondholder group had agreed to its proposed terms. It also said the company expects its overdue financial reports for 2021 and 2022 to be released in April and May.
Trade in its Hong Kong shares has been suspended since last March, pending release of the financial statements, and Evergrande said in Wednesday's filing that it will remain suspended until further notice.
Evergrande also gave an update on its business on Wednesday, saying that additional financing of 250 billion to 300 billion yuan will be required as it resumes operations over the next three years.
"As a result, the company’s ability to repay unsecured debt ... is relatively weak, it said, adding that free cash flow is expected to increase gradually from the fourth year, assuming the company can resume normal operations.
Regarding its electric vehicle business, which some new notes will be linked to, Evergrande said it may have to be shut down unless it obtains new funding.
Sidley Austin and Houlihan Lokey are Evergrande's advisers, while Moelis & Company and Kirkland & Ellis are advising the group of bondholders.
($1 = 6.8802 Chinese yuan renminbi)
Reporting by Clare Jim and Xie Yu Editing by Himani Sarkar and David Goodman
tw0122
2 years ago
I’m sure the political party and billionaires will fix or forge the numbers as usual. So a little setback..
ByIrina Anghel and Evelyn Yu+Follow
January 16, 2023 at 11:04 AM EST
China Evergrande Group said PwC has resigned as its auditor, adding to the pressure on the developer at the epicenter of China’s property crisis.
Evergrande’s board recommended the resignation of PwC after the two firms couldn’t “agree on the timetable and the scope of work in respect of the assessment on the group’s going concern basis,” as well as the “procedures required for the assets impairment assessment,” according to a regulatory filing Monday.
The disagreements mean the 2021 audited financial statements aren’t yet available, which is hindering progress on debt restructuring work, according to the statement.
In its Jan. 16 resignation letter to Evergrande’s audit committee and board, PwC noted it still hadn’t received information relating to “significant matters” of the 2021 audit, the filing said. That included cash flow forecasts, the net realizable value of the group’s properties under development and even the consolidated financial statements of the group.
Evergrande defaulted more than a year ago and its efforts to reach a solution with creditors is under close scrutiny with various deadlines having been missed. The company’s debt overhaul would be one of China’s biggest ever and carry broader implications for the country’s $58 trillion financial system.
A spokesperson for PwC declined to comment. A representative for Evergrande didn’t immediately respond to a request for comment.
Read More: Evergrande Plans First In-Person Meeting With Key Creditor Group
makinezmoney
3 years ago
$EGRNF: Evergrande makes last minute INterest Payment............
Already up in Hong KONG.
Now at $0.33 here on OTC
https://talkmarkets.com/content/global-markets/chinas-evergrande-makes-last-minute-interest-payment-on-dollar-bond-avoiding-default?post=331983
GO $EGRNF
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DJ China Evergrande Makes Overdue Interest Payment on Dollar Bonds, State Media Says -- 3rd Update
1:11 AM ET 10/22/21 | Dow Jones
By Elaine Yu, Quentin Webb and Frances Yoon
China Evergrande Group made an overdue interest payment to international bondholders, the state-owned Securities Times reported Friday, an unexpected move that allows the property company to stave off a default.
The Chinese real-estate developer on Thursday sent $83.5 million to the trustee for the dollar bonds, and that financial institution will in turn pay bondholders, the Securities Times reported. The financial paper is run by the Communist Party's flagship People's Daily newspaper.
Evergrande was nearing the end of a 30-day grace period before bondholders could send a notice of default to the company after it failed to make the interest payment on about $2.03 billion of dollar bonds on Sept. 23.
A default on those bonds would likely have spiraled into the biggest corporate default in Asia, by enabling creditors to declare defaults on some of Evergrande's other debts. The company is one of China's biggest developers, and its most indebted. It had the equivalent of more than $300 billion in total liabilities, including some $89 billion in interest-bearing debt, as of the end of June.
Many international bondholders had expected Evergrande to fail to make its dollar bond payments before the end of the grace period. The company has also skipped other coupon payments in the past few weeks, and has outstanding dollar debt with a total face value of about $20 billion.
The coupon payment was a positive surprise, said Paul Lukaszewski, head of corporate debt for the Asia Pacific region at asset-management firm Abrdn.
"The most important takeaway from Evergrande making the offshore interest payment is that the company is treating its onshore and offshore bond creditors the same for the time being," he said.
Still, Evergrande has to pay another $45 million by Oct. 29, when the grace period on another missed interest payment ends, said Iris Chen, a credit analyst at Nomura. "This does give them extra time, but it's only buying them a few days unless they already have funds for the next coupon, which is due next Friday. They're not out of the woods for sure, " she said.
Advisers to international bondholders said this month they had made little progress in their efforts to engage with Evergrande. On Wednesday, however, the Shenzhen-based group said in a regulatory filing that it will "use its best effort to negotiate for the renewal or extension of its borrowings or other alternative arrangements with its creditors."
Evergrande has been trying to raise funds by disposing of assets such as stakes in subsidiaries and a Hong Kong office building that it owns. Last month, it agreed to sell most of its ownership in a Chinese commercial bank to a state-owned enterprise for the equivalent of $1.55 billion. The company had also planned to sell a majority holding in its property-management unit for the equivalent of about $2.6 billion to a smaller rival, but said this week that it had terminated that deal.
Evergrande's Hong Kong-listed stock has crashed more than 80% this year and its dollar bonds are trading far below face value, indicating skepticism among investors that they will be repaid in full. On Friday, the shares rose 5% in early trading, while its bonds were still at deeply distressed levels that indicate investors still expect the company to ultimately default.
A $4.7 billion, 8.75% Evergrande bond due 2025 was quoted at just 21.75 cents on the dollar Friday morning in Hong Kong, according to Tradeweb, up from 20.5 cents late Thursday.
The developer is the highest-profile casualty of a campaign by Chinese authorities to tame the housing market, in part by tamping down on excessive corporate borrowing through limits on bank lending and restrictions on developers' leverage known as the "three red lines."
But the sector as a whole has run up huge debts -- more than $5 trillion, including cash raised from home buyers through presales of still-uncompleted apartments, according to economists at Nomura -- and is smarting under the new regime.
Several smaller developers, such as Fantasia Holdings Group Co., have recently either defaulted on their debts or demanded investors wait longer for repayment, and prices for the bonds of many developers are trading at deeply distressed levels.
Bond payments made by Evergrande and others could help break the "negative feedback loop the market has been in since the Fantasia default," said Mr. Lukaszewski at Abrdn.
Likewise, Ms. Chen at Nomura said Evergrande's surprise payment, plus recent rhetoric from Chinese policy makers, should lift market sentiment. Senior officials including Vice Premier Liu He and People's Bank of China Gov. Yi Gang have recently said that problems with Evergrande and the sector are manageable, and Mr. Yi has said the rights of creditors should be protected.
Contracted sales, which reflect new contracts signed with home buyers, at many developers fell more than 20% or 30% year-over-year in September, and official government statistics show nationwide new-home prices fell slightly last month for the first time since 2015.
Evergrande's own contracted sales have plunged even more; the developer said this week that its contracted sales "for the month of September 2021 and up till now" totaled the equivalent of just $572 million, far below the $28.5 billion worth of contracted sales it reported in the full two months of September and October 2020.
Write to Elaine Yu at elaine.yu@wsj.com, Quentin Webb at quentin.webb@wsj.com and Frances Yoon at frances.yoon@wsj.com
> Dow Jones Newswires
October 22, 2021 01:11 ET (05:11 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
UpTickMeA$AP
3 years ago
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