On May 15, Hejingtaifu Group, a private 100 billion housing enterprise of "Guangdong School", released the inside information of the default event. Following Evergrande Real Estate, R & F Real Estate, China Olympic Park, Tianyu Real Estate, Kaisa Real Estate, Fancy Year, Times China and Ligao Group, another Guangdong-style private real estate enterprise officially announced "thunderstorm".
KWG Group said in the announcement that on the mandatory redemption date of a senior note due in 2024, the company failed to pay $119 million (≈ 831 million yuan) on time, which constituted a default event.
The announcement shows that Hejingtaifu is now discussing with potential candidates the role of financial adviser to assess the group's capital structure, liquidity and explore all possible solutions to alleviate the current liquidity problem and reach the best solution for all stakeholders as soon as possible. The Group has taken proactive measures to manage its debt in the
face of industry volatility. KWG has always insisted on repaying its debts. As of December 31, 2022, KWG paid a total of 7.544 billion yuan in principal of domestic bonds, CMBS and ABS, 363 million dollars in overseas US dollar bonds and 1.284 billion Hong Kong dollars in syndicated loans, totaling about 11.3 billion yuan.
In September 2022, the Company completed an exchange offer for two offshore senior notes due September 2022 in the aggregate amount of US $900 million and bonds due September 2023 in the amount of US $700 million, relieving its short-term liquidity pressure.
On April 28, Hejingtaifu announced that it had failed to pay its principal of 212 million yuan (RMB) according to the scheduled repayment date of interest-bearing banks and other loans (April 28, 2023), thus triggering cross-default of several long-term interest-bearing banks and other loans.
Hejingtaifu also said in the announcement that since the second half of 2021, China's real estate industry has faced unprecedented challenges. As for the reasons for the initiative to seek a comprehensive solution to overseas debt, Hejingtaifu said in the announcement that since the second half of 2021, China's real estate industry has faced unprecedented challenges. Affected by adverse macroeconomic factors, negative credit events and limited financing channels in the industry, private developers, including the Group, are facing greater liquidity pressure. The overall industry dilemma has weakened the confidence of home buyers in future economic growth, affecting their demand for real estate in China. These changes in market conditions have reduced the operating and financing cash flows of many property developers in the PRC.
Hejingtaifu said that the group has been relying on its internal cash resources and the remittance of cash from China to meet overseas payment obligations. In the future, the Group will strive to continuously improve its assets and liabilities through the measures of "strengthening sales and reducing liabilities", enhance cash liquidity in an all-round way, and continue to take effective measures to improve operational efficiency, implement precise marketing, control risks and reduce costs.
浙公网安备33010802003254号