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Snowballing disaster at Evergrande, world’s most indebted developer By Reuters


© Reuters. FILE PHOTO: The China Evergrande Centre constructing signal is seen in Hong Kong, China December 7, 2021. REUTERS/Tyrone Siu/File Picture

HONG KONG (Reuters) – China Evergrande Group will provide asset packages that will embody shares in its two overseas-listed companies as a sweetener for restructuring offshore debt, the developer stated, as a stifling liquidity disaster within the property sector continues.

Evergrande’s restructuring proposal got here on Friday as China’s property sector, a key pillar for the economic system, lurches from one disaster to a different. The sector has seen a string of debt defaults by cash-squeezed builders.

Here’s a timeline of occasions of how Evergrande’s debt disaster unfolded:

August 2020

Regulators meet with Evergrande and different builders to introduce caps for 3 debt ratios in a coverage dubbed the “three purple strains”.

Evergrande asks the Guangdong provincial authorities to approve a Shenzhen backdoor itemizing of many of the property property of flagship unit Hengda Actual Property Group, saying it might in any other case face a money crunch.

November 2020

Evergrande terminates the Shenzhen backdoor itemizing plan.

Evergrande Property Companies Group Hong Kong IPO raises $1.8 billion.

January 2021

China Evergrande New Vitality Car Group Ltd, Evergrande’s electrical automobile unit, raises $3.4 billion by bringing in six new buyers.

March 2021

Evergrande sells a $2.1 billion stake in on-line actual property and vehicle market Fangchebao in a pre-IPO deal.

June 2021

Evergrande says it can promote a $386 million stake in peer China Calxon Group Co Ltd.

It meets one criterion of the ‘three purple strains’, reducing interest-bearing debt to round 570 billion yuan from 716.5 billion yuan six months earlier.

Some industrial paper holders say they haven’t acquired funds from Evergrande.

July 2021

A court docket orders freezing a 132 million yuan financial institution deposit of Evergrande on the request of China Guangfa Financial institution Co Ltd over a mortgage prolonged to the developer.

Some banks in Hong Kong decline to increase new loans to consumers of two of Evergrande’s uncompleted residential initiatives.

August 2021

Evergrande agrees to promote stakes in web unit HengTen Networks Group Ltd value HK$3.25 billion.

The Guangzhou Intermediate Individuals’s Courtroom centralises lawsuits in opposition to Evergrande nationwide, sources say.

Many Evergrande initiatives throughout the nation halt building on account of overdue funds.

Hui Ka Yan steps down as chairman of flagship unit Hengda Actual Property.

China’s central financial institution and banking watchdog summon senior executives and concern a uncommon warning that Evergrande should cut back its debt threat and prioritise stability.

Evergrande warns of liquidity and default dangers if it fails to renew building, eliminate property and renew loans.

September 2021

Evergrande says on-line hypothesis about chapter and restructuring is “completely unfaithful” however acknowledges “unprecedented difficulties”.

It misses two offshore bond coupon funds totalling $131 million. The funds have a grace interval of 30 days.

Evergrande engages monetary advisers to look at choices, warning of cross-default dangers amid plunging property gross sales.

Evergrande says it can increase 9.99 billion yuan promoting Shengjing Financial institution Co Ltd shares.

October 2021

Advisers of some Evergrande greenback bondholders say they need extra data and transparency.

Hong Kong’s audit regulator says it’s investigating Evergrande’s 2020 accounts and audit by PwC.

China’s vice premier, central financial institution and banking and securities watchdogs search to reassure markets that spillover results on the banking system and actual property sector from Evergrande’s debt issues are controllable.

Evergrande abandons plans to promote a $2.6 billion stake in Evergrande Property Companies to rival Hopson Growth Holdings Ltd.

November 2021

Evergrande as soon as once more averts a destabilising default with a last-minute bond fee.

Evergrande sells complete stake in HengTen at steep low cost for $273.5 million.

A authorities physique takes over Evergrande’s soccer stadium with a view to promoting it, Reuters stories.

Chairman Hui sells 1.2 billion shares value a complete of HK$2.68 billion, reducing his stake in Evergrande to 67.9% from 77%.

December 2021

China’s Guangdong province summons Chairman Hui after the developer stated there was “no assure” it will have sufficient funds to satisfy debt repayments, whereas regulators sought to reassure markets.

Evergrande units up a threat administration committee.

Evergrande doesn’t pay a coupon value $82.5 million by the tip of the grace interval, triggering cross-default of its $19 billion offshore bonds.

January 2022

Southern metropolis of Danzhou in Hainan province orders 39 buildings of Evergrande at a resort growth be demolished.

Retail buyers in Evergrande’s wealth administration merchandise maintain protests at its places of work across the nation, demanding compensation of their overdue investments.

Hengda Actual Property seeks onshore bondholders’ approval to increase bond fee deadline for the primary time. They attain settlement to delay funds for a 4.5 billion yuan bond for six months.

A key group of Evergrande’s worldwide collectors threatens to take motion if Evergrande exhibits no urgency to resolve the default.

Evergrande begins talks with offshore collectors, including it can concern a preliminary restructuring plan inside six months.

Oaktree Capital Administration appoints receivers for a plot of Evergrande’s rural land in Hong Kong.

February, 2022

Evergrande sells stakes in 4 unfinished initiatives to state-owned corporations, recovering round 1.95 billion yuan of capital and settling round 7 billion yuan of liabilities within the initiatives.

March, 2022

Evergrande suspends buying and selling in its shares, citing incapacity to publish audited outcomes earlier than March 31 and an investigation of the property administration arm wherein 13.4 billion yuan of deposits have been seized by banks.

Evergrande says to publish restructuring plan by the tip of July.

June, 2022

An investor in Fangchebao information a winding-up petition in opposition to Evergrande for its failure to honour a share repurchase settlement.

July, 2022

Onshore bondholders, for the primary time, reject Evergrande’s proposal to postpone compensation of a bond, value 4.5 billion yuan.

Evergrande CEO and CFO step down as an inside investigation finds 13.4 billion yuan deposits within the property administration unit have been used as collateral for pledge ensures to facilitate financing by the group.

Evergrande is promoting its Hong Kong headquarters through a young.

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