On New Year’s Eve, Evergrande had another accident.
China Evergrande: a land in Hong Kong was taken over by the debtor
involves US $520 million financing
China Evergrande announced in the Hong Kong Stock Exchange on the 30th that it was informed that the assets of several subsidiaries of the company were appointed asset receivers.
According to the announcement, on January 26, China Evergrande learned that the assets of several subsidiaries of the company were appointed asset receivers. The assets were the guarantee of a financing transaction with a principal of about US $520 million signed by China Evergrande subsidiaries in January 2021. The assets were an undeveloped land to be used for housing in Yuen Long, Hong Kong, China.
China Evergrande said the company was seeking legal advice to safeguard its legitimate rights and interests. At the same time, the company is actively discussing with the lender on the solution of the matter, looking forward to reaching a settlement, so as to maximize the return of the group. After the relevant guarantee liabilities are disposed, if the asset has residual value, it will be preferentially used for overseas operation.
China Evergrande said that the appointed asset receiver of the subsidiary and the possible sale of relevant secured assets will not have a significant impact on the company’s operation or financial status, nor will it affect the company’s ongoing debt restructuring.
According to surging news, the project is Hengda’s heshengwei project in Yuen Long. It was purchased by Hengda Group from Hengji real estate with HK $4.75 billion in 2019. According to the regulations, the planning must be changed first, and then the land lease and premium can be applied for development. After making up the land price, the total cost of Evergrande group in the project exceeded HK $8.9 billion. In August 2021, Evergrande sought buyers for the project in the market, and the intended price at that time was about HK $8 billion. According to people familiar with the matter, the project has been taken over by Oak capital.
Statistics show that the project covers a total area of about 2232500 square feet, of which more than 510000 square feet connected to the Mai Po conservation area will be restored to a wetland ecological area separated from the residential development site. More than 1.7223 million square feet of land for housing construction, with a total floor area of about 893000 square feet.
Previously, on January 24, the official website of Evergrande group released the statement of Evergrande group on matters related to overseas bonds.
The statement said that the group looks forward to further dialogue and communication with overseas creditors, and calls on overseas creditors to jointly ensure that the rights of all stakeholders are not greatly damaged and do not take any radical legal action, which will have an impact on the current hard won stability.
On the 26th, Evergrande announced in the HKEx that it would hold a teleconference with creditors on the same day to reiterate that it would assess the situation of the group and formulate a restructuring plan to protect the rights of stakeholders. To this end, the company is promoting auditors to carry out relevant work, and will continue to carefully listen to the opinions and suggestions of creditors during the period, and strive to put forward a preliminary restructuring plan within the next six months.
