Timeline: Snowballing disaster at Evergrande, world’s most indebted developer

HONG KONG — China Evergrande Group will present asset deals that might include things like shares in its two overseas-detailed businesses as a sweetener for restructuring offshore credit card debt, the developer said, as a stifling liquidity crisis in the home sector continues.

Evergrande’s restructuring proposal arrived on Friday as China’s property sector, a critical pillar for the economy, lurches from 1 disaster to a different. The sector has viewed a string of credit card debt defaults by cash-squeezed developers.

Here is a timeline of gatherings of how Evergrande’s personal debt disaster unfolded:

August 2020

Regulators meet with Evergrande and other developers to introduce caps for three financial debt ratios in a policy dubbed the “three purple traces.”

Evergrande asks the Guangdong provincial government to approve a Shenzhen backdoor listing of most of the house assets of flagship unit Hengda Actual Estate Group, saying it could usually facial area a cash crunch.

November 2020

Evergrande terminates the Shenzhen backdoor listing program.

Evergrande Home Solutions Group Hong Kong IPO raises $1.8 billion.

January 2021

China Evergrande New Strength Vehicle Group Ltd., Evergrande’s electrical vehicle unit, raises $3.4 billion by bringing in six new investors.

March 2021

Evergrande sells a $2.1 billion stake in online actual estate and car market Fangchebao in a pre-IPO deal.

June 2021

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

It meets 1 criterion of the “three red lines,” chopping interest-bearing personal debt to all-around 570 billion yuan from 716.5 billion yuan 6 months before.

Some commercial paper holders say they have not acquired payments from Evergrande.

July 2021

A court orders freezing a 132 million yuan financial institution deposit of Evergrande at the ask for of China Guangfa Financial institution Co. Ltd. around a mortgage extended to the developer.

Some banking companies in Hong Kong decline to lengthen new loans to consumers of two of Evergrande’s uncompleted residential jobs.

August 2021

Evergrande agrees to market stakes in net unit HengTen Networks Team Ltd 0136.HK worth HK$3.25 billion.

The Guangzhou Intermediate People’s Court docket centralizes lawsuits against Evergrande nationwide, sources say.

Lots of Evergrande jobs across the nation halt development due to overdue payments.

Hui Ka Yan techniques down as chairman of flagship unit Hengda Genuine Estate.

China’s central bank and banking watchdog summon senior executives and concern a uncommon warning that Evergrande have to lessen its financial debt danger and prioritize balance.

Evergrande warns of liquidity and default threats if it fails to resume building, dispose of belongings and renew financial loans.

September 2021

Evergrande states on line speculation about individual bankruptcy and restructuring is “totally untrue” but acknowledges “unprecedented troubles.”

It misses two offshore bond coupon payments totaling $131 million. The payments have a grace period of time of 30 times.

Evergrande engages economical advisers to look at selections, warning of cross-default pitfalls amid plunging assets sales.

Evergrande states it will increase 9.99 billion yuan marketing Shengjing Lender Co. Ltd. shares.

October 2021

Advisers of some Evergrande dollar bondholders say they want additional information and transparency.

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

China’s vice premier, central lender and banking and securities watchdogs search for to reassure markets that spillover outcomes on the banking technique and genuine estate sector from Evergrande’s credit card debt issues are controllable.

Evergrande abandons designs to offer a $2.6 billion stake in Evergrande Assets Companies to rival Hopson Advancement Holdings Ltd.

November 2021

Evergrande once all over again averts a destabilizing default with a final-minute bond payment.

Evergrande sells whole stake in HengTen at steep price reduction for $273.5 million.

A governing administration physique will take around Evergrande’s soccer stadium with a check out to selling it, Reuters experiences.

Chairman Hui sells 1.2 billion shares worth a whole of HK$2.68 billion, lowering his stake in Evergrande to 67.9% from 77%.

December 2021

China’s Guangdong province summons Chairman Hui after the developer mentioned there was “no guarantee” it would have sufficient resources to fulfill credit card debt repayments, whilst regulators sought to reassure markets.

Evergrande sets up a risk administration committee.

Evergrande does not fork out a coupon value $82.5 million by the close of the grace period of time, triggering cross-default of its $19 billion offshore bonds.

January 2022

Southern town of Danzhou in Hainan province orders 39 structures of Evergrande at a vacation resort growth be demolished.

Retail traders in Evergrande’s wealth administration items keep protests at its workplaces around the region, demanding reimbursement of their overdue investments.

Hengda Real Estate seeks onshore bondholders’ approval to lengthen bond payment deadline for the to start with time. They access arrangement to delay payments for a 4.5 billion yuan bond for 6 months.

A key group of Evergrande’s worldwide creditors threatens to just take action if Evergrande shows no urgency to resolve the default.

Evergrande starts talks with offshore collectors, adding it will situation a preliminary restructuring strategy in six months.

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

February 2022

Evergrande sells stakes in four unfinished initiatives to state-owned providers, recovering all over 1.95 billion yuan of funds and settling close to 7 billion yuan of liabilities in the tasks.

March 2022

Evergrande suspends buying and selling in its shares, citing lack of ability to publish audited final results prior to March 31 and an investigation of the home administration arm in which 13.4 billion yuan of deposits have been seized by banks.

Evergrande claims to publish restructuring plan by the conclude of July.

June 2022

An investor in Fangchebao data files a winding-up petition from Evergrande for its failure to honor a share repurchase arrangement.

July 2022

Onshore bondholders, for the to start with time, reject Evergrande’s proposal to postpone repayment of a bond, well worth 4.5 billion yuan.

Evergrande CEO and CFO move down as an interior investigation finds 13.4 billion yuan deposits in the property administration unit had been utilised as collateral for pledge ensures to aid funding by the group.

Evergrande is offering its Hong Kong headquarters by way of a tender.

Topics #developer #Real Estate #Real Estate Agency #Real Estate Biz #Real Estate Sale