Evergrande chair summoned by officials after warning on debt

Date:

Evergrande Group Chairman Xu Jiayin warned on Friday that a confused real estate developer may not be able to meet his financial obligations and was summoned by Chinese government officials to plan a restructuring of offshore debt.

Decision by officials in Guangdong, Southern Province Evergrande Headquarters requested a meeting hours after disclosing that the Property Group received a $ 260 million warranty-related request, but did not provide details.

In the course of a series of developments, the local government of Guangdong has agreed to parachute a team of staff to a debtor company with severe financial difficulties. Beijing tightened regulations About the country’s once booming real estate sector.

The state government provided no further information about what the team would do.

In a filing with the Hong Kong Stock Exchange on Friday, Evergrande said, “There is no guarantee that the Group has sufficient funds to continue to fulfill its financial obligations.”

Immediately after the application, the People’s Bank of China intensified its criticism of the company, accusing it of “management deficiencies” and pursuing “blind expansion.”

The central bank argued that Evergrande’s plight does not affect the stability of the wider market. The China Securities Regulatory Commission, the country’s stock market regulator, also told reporters that risks from developers could be curtailed.

However, the size of Evergrande’s borrowing (the group has more than $ 300 billion in debt) has already led to a sector-wide liquidity crisis that has swept rival developers such as Kaisa. Evergrande’s major role in China’s real estate sector is keeping investors around the world tracking their fate.

Craig Botham, Chief China Economist at Pantheon Macroeconomics, an economic research consultancy, said: However, there is a guarantee that this will not affect the cavity of the funding ring in the real estate sector. ”

Nevertheless Evergrande missed some interest payments Offshore bonds have not officially defaulted because they fulfilled their obligations before the 30-day grace period expired.

In a Hong Kong filing, the company “will actively engage with offshore creditors to develop a viable restructuring plan for its offshore debt.”

Evergrande’s international bondholder advisor was previously “Significant engagement” From the company.

In its statement, the central bank described foreign bond investors as “mature” and said there were “legal provisions and procedures to address related issues.”

Bozam said the bailout for dollar bondholders was “unlikely.” “Instead, resources are focused on domestic stakeholders. Real estate buyers, local banks and affiliates,” he said.

Additional reports by Emma Zhou in Beijing, Sun Yu in Shanghai, and Tom Mitchell in Singapore

Evergrande chair summoned by officials after warning on debt Source link Evergrande chair summoned by officials after warning on debt

The post Evergrande chair summoned by officials after warning on debt appeared first on California News Times.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

Pennsylvania GOP Governor Candidate Doug Mastriano Releases Excellent and Emotional Campaign Video

Pennsylvania GOP Governor Candidate Doug Mastriano released a great...

Trump Legal Team Claims Biden DOJ Misled Court and Actually Seized *200,000 Pages* of Documents From Mar-a-Lago

DEVELOPING: Trump Legal Team Claims Biden DOJ Misled Court...

Rapper Coolio Found Dead in Los Angeles

Rapper Coolio has been found dead on a bathroom...

Nord Stream Pipeline Damage May Be Irreparable after Sabotage Attack

The Kremlin denounced allegations by Western media that it...