China Evergrande has new news.
On December 22, China Evergrande (03333. HK) announced that in view of the current risks faced by the group, the risk resolution Committee of China Evergrande group is mobilizing extensive resources and will actively maintain communication with creditors, strive to resolve group risks and safeguard the legitimate rights and interests of all parties.
It is worth mentioning that on December 22, Evergrande real estate group disclosed that due to the change of its cash flow status and capital arrangement, China integrity international decided to reduce the credit rating of Evergrande real estate from BB to B, and “19 Evergrande 01”, “19 Evergrande 02”, “20 Evergrande 01”, “20 Evergrande 02”, “20 Evergrande 03” and “20 Evergrande 04” The debt credit rating of “20 Evergrande 05” and “21 Evergrande 01” was lowered from BB to B, and the subject and debt credit rating continued to be included in the watch list of possible downgrades.
Risk resolution Committee: extensive resources are being mobilized to address risks
On December 22, Evergrande announced that China Evergrande risk resolution committee is mobilizing extensive resources for the current risks faced by the group, and will actively maintain communication with creditors, strive to resolve the group’s risks and safeguard the legitimate rights and interests of all parties. Evergrande reminds that shareholders and other investors of the company need to act prudently when buying and selling the company’s shares.
It is understood that on December 6, China Evergrande announced that considering the current operational and financial challenges faced by the group, the board of directors decided to establish China Evergrande risk resolution Committee. The members of the risk resolution Committee have diverse backgrounds, including current executives of Evergrande, executives and professionals of several leading enterprises, etc.
Members of Evergrande’s risk resolution Committee include: Xu Jiayin, chairman of Evergrande’s board of directors, pan Darong, chief financial officer and executive director of Evergrande, Liu Zhihong, deputy general manager of Yuehai holding group, Zhao Limin, vice president of China Cinda, Li Feng, chief capital operation officer of Yuexiu group, Guosen Securities Co.Ltd(002736) compliance director Chen Yong, and Hao Han, partner of Beijing Zhonglun law firm.
The Chinese reporter of the securities firm noted that among the seven members of Evergrande’s newly established risk resolution Committee, two are Evergrande executives, and the other five are from the periphery, bringing together the strength of the corresponding government and professional institutions. Among them, Yuehai holdings is a wholly-owned state-owned enterprise of Guangdong provincial government, Yuexiu group is an enterprise absolutely controlled by Guangzhou municipal government, China Cinda is one of the four AMCs specializing in the disposal of non-performing assets, Guosen Securities Co.Ltd(002736) and Zhonglun law firm are professional capital operation and legal intermediaries.
China Evergrande group said that the rich experience of the members of the risk resolution Committee and the wide range of resources they can mobilize are conducive to solving the current difficulties more smoothly.
It is worth mentioning that Evergrande may not be able to fulfill its guarantee obligation of USD 260 million in early December. Immediately, the Guangdong Provincial Government interviewed Xu Jiayin overnight. In order to effectively resolve risks, the Guangdong provincial government agreed to send a working group to Evergrande to urge and promote enterprise risk disposal.
as of the closing on December 22, China Evergrande reported HK $1.45/share, down 3.33%, with a total market value of HK $19.15 billion.
rating has just been downgraded
It is worth mentioning that Evergrande once again stressed that the risk resolution committee is mobilizing resources from all parties, actively maintaining communication with creditors and trying to resolve the group’s risks, which seems to have something to do with the recent downgrade of its rating, which is bad for creditors.
On December 22, Evergrande Real Estate Group Co., Ltd., a subsidiary of China Evergrande, issued an announcement on credit rating adjustment in Shenzhen Stock Exchange. The credit rating adjustment will take effect on December 20.
Evergrande real estate group said that according to the announcement of China integrity international on lowering the credit rating of the main body and related debts of Evergrande Real Estate Group Co., Ltd. and continuing to include them in the observation list of possible downgrade disclosed by China integrity international on December 20, China integrity international was concerned that the cash flow situation of Evergrande real estate and its controlling shareholder, China Evergrande, was still deteriorating, According to the current capital arrangement of China Evergrande and Evergrande real estate, priority will be given to the payment of project funds and other suppliers, and the funds that can be used to repay the debt principal and interest will be very limited.
China integrity International said that in the coming year, there will be great pressure for the debt of Evergrande group and Evergrande real estate to mature intensively. Next year will also be the peak of debt repayment of domestic and foreign credit bonds, and the uncertainty of debt principal and interest repayment will further increase.
based on the above factors, China integrity international decided to reduce the issuer’s credit rating of Evergrande real estate from BB to B, and the debt credit rating of “19 Evergrande 01”, “19 Evergrande 02”, “20 Evergrande 01”, “20 Evergrande 02”, “20 Evergrande 03”, “20 Evergrande 04”, “20 Evergrande 05” and “21 Evergrande 01” from BB to B, And continue to include the subject and the above debt credit rating in the observation list of possible downgrade.
(brokerage China)
