China’s builders tackle restructuring as crisis enters new phase
CHINA’S property-debt crisis has entered a new stage, as tensions have increasingly shifted to developers’ court battles with creditors over debt restructuring plans, and the once-unthinkable consequence of liquidation orders.
At least 23 Chinese builders or related companies have so far received wind-up petitions in Hong Kong from creditors since the beginning of the real estate crisis, according to Bloomberg-compiled data. So far, at least five of them have been ordered to wind up.
That includes China Evergrande Group, whose liquidation order sent shock waves through the sector, underscoring the legal risk of failing to assuage the concerns of key groups of creditors. Adding to the company’s troubles, the nation’s top securities regulator fined its main onshore unit for falsely inflating revenue by more than US$78 billion in the two years leading up to its failure.
Smaller peers, including Redsun Properties Group and Kaisa Group Holdings, will face hearings in the city in the coming weeks. The list of court battles is likely to expand: Chinese developers have defaulted on US$111 billion of onshore and offshore bonds since the nation’s real estate crisis began in 2021, according to Bloomberg-compiled data.
The following list includes key dates and the progress of offshore debt-restructuring efforts for China’s biggest defaulted developers by total liabilities. Debt figures are based on Bloomberg-compiled data and public filings. The estimated size of debt restructuring is based on debt-claim disclosures, existing offshore debt or offshore interest-bearing liabilities in public filings.
China Evergrande Group
Total Liabilities: US$332 billion
Estimated offshore debt restructuring size: At least US$38 billion
Next to watch: Liquidation process, delisting risk
Country Garden Holdings
Total Liabilities: US$189 billion
Estimated offshore debt restructuring size: Unclear
Next to watch: Court hearing on May 17
Sunac China Holdings
Total Liabilities: US$139.4 billion
Estimated offshore debt restructuring size: About US$10 billion
Next to watch: Restructuring payments
Shimao Group Holdings
Total Liabilities: US$71.1 billion
Estimated offshore debt restructuring size: About US$12 billion
Next to watch: Restructuring plan details
Yango Group
Total Liabilities: US$38.2 billion
Estimated offshore debt restructuring size: Unclear
Next to watch: Onshore restructuring process, offshore unit liquidation
China Aoyuan Group
Total Liabilities: US$33.7 billion
Estimated offshore debt restructuring size: More than US$6 billion
Next to watch: Operations of the company
Kaisa Group Holdings
Total Liabilities: US$32.7 billion
Estimated offshore debt-restructuring size: More than US$12 billion
Next to watch: Court hearing on Apr 29
Logan Group
Total Liabilities: US$31.7 billion
Estimated offshore debt restructuring size: About US$8 billion
Next to watch: Signing agreement with creditors in April
CIFI Holdings Group
Total Liabilities: US$26.5 billion
Estimated debt restructuring size: About US$7 billion
Next to watch: Details of a restructuring plan
Sino-Ocean Group Holding
Total Liabilities: US$26.5 billion
Estimated offshore debt restructuring size: Unclear
Next to watch: Details of a restructuring plan
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Half of German housing construction firms short on orders
China’s housing mess finally hits Xi’s interest
A way to beat high mortgage rates is to take over someone else’s loan
With China’s property market struggling, India, South Korea and Vietnam are hot
Shophouse sales surge and at higher prices in Q1 as high-net-worth investors return: Knight Frank
Sony’s plans for Paramount include sale of famous studio lot