China Evergrande Real Estate Ordered to Pay $853 Million Compensation to Investor for Failing to Meet 4 Years Restructuring Timeline Agreement
19th May 2023 | Hong Kong
China Evergrande Real Estate had been ordered (China Guangzhou court, 12/5/23) to pay $853 million (CNY 6 billion) in compensation to an investor (Hexin Hengju Shenzhen Investment Holding Center) for failing to meet the 4 years restructuring timeline agreement. In 2016, Evergrande Real Estate had launched a restructuring program (4 year timeline) for a secondary listing in China Mainland, raising CNY 130 billion including CNY 5 billion from Hexin Hengju Shenzhen Investment Holding Center. As restructuring program is not completed within 4 years, the case was brought to court. In the China court ruling, Evergrande Real Estate will pay Hexin Hengju Shenzhen Investment Holding Center CNY 5 billion (capital) and CNY 1 billion for damages & dividends.
“ China Evergrande Real Estate Ordered to Pay $853 Million Compensation to Investor for Failing to Meet 4 Years Restructuring Timeline Agreement “
China Evergrande Chairman & Founder Hui Ka Yan Wins Preliminary Majority of Creditors Support, Evergrande with $300 Billion in Liabilities & 200,000 Employees
25th March 2023 – China Evergrande Chairman & founder Hui Ka Yan has won preliminary support from majority of creditors, with China Evergrande Group with an estimated $300 billion in liabilities & 200,000 employees. China Evergrande Group is planning to update Hong Kong court to present the new restructuring terms and target to have the agreement signed by end of March 2023. More info below.
21st January 2023 – China Evergrande Chairman & founder Hui Ka Yan fortune had fell from $42 billion in 2017 to $3 billion in 2023 (Bloomberg), with Evergrande struggling to restructure $300 billion in liabilities. Earlier in 2023 January, China Evergrande Group $1.1 billion Hong Kong headquarter tender sale failed to meet creditors price requirement of around $1 billion to $1.15 billion (Address: 38 Gloucester Rd, Wan Chai, Hong Kong). China Evergrande is one of China’s largest property developer and has more than $300 billion in debts. In November 2022, China Construction Bank had seized China Evergrande Chairman Hui Ka Yan $90 million (HKD 700 million) luxury mansion in Hong Kong (The Peak), with Citic taking over China Evergrande Hong Kong headquarter in September 2022 and Oaktree Capital Management taking over China Evergrande Yuen Long district land earlier in 2022. Earlier in October 2022, China Evergrande founder & billionaire Hui Ka Yan has put on sale London most expensive house for £200 million, having just bought the house 2 years ago in 2020 April for £210 Million. The £200 million house in London is a 20-bedroom 62,000 square feet mega-mansion in the prestigious Knightsbridge neighbourhood (London). More info below
China Evergrande Group $1.1 Billion Hong Kong HQ Tender Sale Fails to Meet Creditors Price Requirement, Group Debts of More than $300 Billion
5th January 2023 – China Evergrande Group $1.1 billion Hong Kong headquarter tender sale has failed to meet creditors price requirement of around $1 billion to $1.15 billion (Address: 38 Gloucester Rd, Wan Chai, Hong Kong). China Evergrande is one of China’s largest property developer and has more than $300 billion in debts. In November 2022, China Construction Bank had seized China Evergrande Chairman Hui Ka Yan $90 million (HKD 700 million) luxury mansion in Hong Kong (The Peak), with Citic taking over China Evergrande Hong Kong headquarter in September 2022 and Oaktree Capital Management taking over China Evergrande Yuen Long district land earlier in 2022. Earlier in October 2022, China Evergrande founder & billionaire Hui Ka Yan has put on sale London most expensive house for £200 million, having just bought the house 2 years ago in 2020 April for £210 Million. The £200 million house in London is a 20-bedroom 62,000 square feet mega-mansion in the prestigious Knightsbridge neighbourhood (London).
China Construction Bank Seizes China Evergrande Chairman Hui Ka Yan $90 Million Luxury Mansion in Hong Kong, Citic Took HK Headquarters & Oaktree Capital Took Yuen Long Land
3rd November 2022 |- China Construction Bank had seized China Evergrande Chairman Hui Ka Yan $90 million (HKD 700 million) luxury mansion in Hong Kong (The Peak), with Citic taking over China Evergrande Hong Kong headquarter in September 2022 and Oaktree Capital Management taking over China Evergrande Yuen Long district land earlier in 2022. China Evergrande is one of China’s largest property developer and has more than $300 billion in debts. Earlier in October 2022, China Evergrande founder & billionaire Hui Ka Yan has put on sale London most expensive house for £200 million, having just bought the house 2 years ago in 2020 April for £210 Million. The £200 million house in London is a 20-bedroom 62,000 square feet mega-mansion in the prestigious Knightsbridge neighbourhood (London).
In late 2021, China Evergrande founder Hui Ya Kun had been pledging and selling $1.1 billion of his personal & company assets including 2 Gulfstream private jets, 2 Hong Kong luxury properties and personal investment portfolio to prevent a default of interest payment of its $300 billion debt. The 2 Gulfstream private jets were sold to American investors, one to Earth Air for $40 million and another one to Aviation Sales Associates for $15 million. China Evergrande is founded in 1996 by Hui Ka Yan (Xu Jiayin). In 2009, China Evergrande went public in Hong Kong. At one point, Hui Ka Yan had a personal fortune of more than $30 billion. In 2021, his personal fortune is estimated at around $7 billion to $11 billion.
Banks Seized $2.1 Billion of Bank Guarantees at China Evergrande Property Services
Earlier in 2022, China Evergrande, had forced its CEO Xia Haijun and CFO Pan Darong to resign (22/7/22) after discovery of $2 billion of deposits (CNY 13.4 billion) pledged as securities were used to obtain bank loans. With some borrowers unable to pay back, the $2 billion of deposits may be in full default. Mr. Siu Shawn, who is currently an executive director, has been appointed as the CEO.
In March 2022, Banks had seized $2.1 billion of bank guarantees & deposits at Evergrande Property Services Group, a key subsidiary of China Evergrande. China Evergrande Group have also announced that it is unable to meet a deadline to release its annual results for financial year 2021. China Evergrande is one of the largest property conglomerate in China, which had been preventing a default of interest payment of its $300 billion debt, but has officially defaulted on its debt on missed interest payments and with top credit rating agency Fitch Ratings downgrading Evergrande’s rating in December 2021. China Evergrande is founded in 1996 by Hui Ka Yan (Xu Jiayin). In 2009, China Evergrande went public in Hong Kong. At one point, Hui Ka Yan had a personal fortune of more than $30 billion. In 2021, his personal fortune is estimated at around $7 billion to $11 billion.
China Evergrande
China Evergrande, one of the largest property conglomerate in China which had been preventing a default of interest payment of its $300 billion debt, has officially defaulted on its debt on missed interest payments and with top credit rating agency Fitch Ratings downgrading Evergrande’s rating in December 2021. An official default of China Evergrande means the company may not be able to restructure debt at a lower cost, and may trigger a widespread default and short-term pressure of property prices due to asset sale. China Evergrande is founded in 1996 by Hui Ka Yan (Xu Jiayin). In 2009, China Evergrande went public in Hong Kong. At one point, Hui Ka Yan had a personal fortune of more than $30 billion. In 2021, his personal fortune is estimated at around $7 billion to $11 billion.
China Evergrande is one of the largest property conglomerate in China with more than 1,300 real estate projects & 200,000 employees and business interests in electric cars, healthcare, consumer products etc, and has more than $300 billion of outstanding debts. China Evergrande is suffering from severe cashflow and little working capital, due to significant decline in property sales and obligations on interest payments.
Should China Evergrande defaults, the banking industry may start to face a loan write-down or lengthy recovery on their loans to China Evergrande, suppliers will receive an uncertain recovery, and homebuyers and investors will face uncertainties on their property purchase and investments.
Related:
- China Evergrande Group $1.1 Billion Hong Kong HQ Tender Sale Fails to Meet Creditors Price Requirement, Group Debts of More than $300 Billion
- China Construction Bank Seizes China Evergrande Chairman Hui Ka Yan $90 Million Luxury Mansion in Hong Kong, Citic Took HK Headquarters & Oaktree Capital Took Yuen Long Land
- China Evergrande Founder & Billionaire Hui Ka Yan Puts on Sale London Most Expensive House for £200 Million, Bought for £210 Million in 2020
- China Evergrande CEO & CFO Forced to Resign After $2 Billion of Deposits Pledged as Securities Were Used to Obtain Bank Loans
- Banks Seized $2.1 Billion of Bank Guarantees at China Evergrande Property Services
- China Evergrande CEO Sold $56.5 Million of Bonds in Q3 2021 Before Bonds Default in December
- China Evergrande Founder Pledges $1.1 Billion Personal Assets to Prevent Default, Sells Private Jets & Luxury Properties
- China Central Bank Injects $71 Billion into Banking System, China Evergrande $300 Billion Debt Crisis
- China Government Warns of Payment Default by China Evergrande, Debts of $300 Billion
- China Evergrande Electric Car Share Price Falls 91% Since February 2021, Loses $82 Billion in Market Value
- China Crackdown: Tighter Control of Macau Casinos, Shares Lose $18 Billion in Market Value
- China Actress Zheng Shuang to Pay $46 Million for Tax Evasion
- China Distressed Asset Manager China Huarong with $15.9 Billion Losses to Receive State Bailout, Citic Group Becomes Key Shareholder
- China Sentenced Former Head of ICBC Shanghai to Lifetime Imprisonment for Receiving $21 Million in Bribes
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