The pace of debt restructuring of China Fortune Land Development Co.Ltd(600340) began to accelerate.
On February 9, China Fortune Land Development Co.Ltd(600340) disclosed the announcement on the progress of debt restructuring. Up to now, the financial debt in its debt restructuring plan has signed a contract to realize the debt restructuring, with a cumulative amount of 42.918 billion yuan, and the corresponding amount of debt interest reduction and penalty interest exemption is 2.869 billion yuan.
According to the previous disclosure, China Fortune Land Development Co.Ltd(600340) existing financial debt totaled 219.2 billion yuan, and the total amount of debt that has not been repaid on time up to now amounted to 62.753 billion yuan (excluding interest). In proportion, the amount that China Fortune Land Development Co.Ltd(600340) negotiated and implemented on paper with relevant creditors has accounted for 68.4% of the principal of default debt and 19.6% of the total amount of existing financial debt.
The debt conversion speed of China Fortune Land Development Co.Ltd(600340) is relatively considerable. Since the announcement of debt default in February 2021, it has disclosed the China Fortune Land Development Co.Ltd(600340) debt restructuring plan on October 8 of that year, which was voted by the debt Committee on December 9. It has been just two months since the debt committee voted to approve the debt restructuring plan, and an agreement of 42.918 billion yuan has been reached, which also reflects the relatively smooth communication between China Fortune Land Development Co.Ltd(600340) and creditors.
China Fortune Land Development Co.Ltd(600340) said that the implementation of the arrangements related to the debt restructuring plan will have a positive impact on the company’s financial situation and operating results, help reduce the company’s debt pressure and improve the company’s financial situation. For the asset disposal involved, the company will timely fulfill its obligation of information disclosure in accordance with relevant laws and regulations.
However, the communication with creditors is not completely without waves. On February 7, Zhongrong trust expressed that the debt restructuring conditions provided for China Fortune Land Development Co.Ltd(600340) are temporarily unacceptable.
China Fortune Land Development Co.Ltd(600340) in response to this, the reporter of the 21st Century Business Herald said that at present, the company has conducted several rounds of negotiations with Zhongrong trust and is further communicating the specific contents of the agreement in detail.
“The company will continue to adhere to the basic principle of ‘no debt evasion’, strictly implement the debt restructuring plan, promote the signing of debt restructuring agreement, effectively protect the legitimate rights and interests of creditors and strive to resolve debt risks as soon as possible.” China Fortune Land Development Co.Ltd(600340) stressed several times.
