Hong Kong Court Gives Order to Liquidate China Evergrande with $327 Billion Liabilities & Share Pricing Falling to $270 Million Market Value after Failure to Agree Restructuring Plan with Creditors, Liquidation Petition Filed by an Investor Top Shine in June 2022, Immediate Trading Halt for China Evergrande, Evergrande Property Services & China Evergrande New Energy Vehicle Group, Chairman Hui Ka Yan Investigated for Suspected Illegal Crimes
29th January 2024 | Hong Kong
A Hong Kong court has given the order to liquidate China Evergrande ($327 billion liabilities & share price falling to $270 million market value) after failure to agree restructuring plan with creditors. The liquidation petition was filed by an investor (Top Shine) in June 2022. With the liquidation order, an immediate trading halt were issued for China Evergrande, Evergrande Property Services & China Evergrande New Energy Vehicle Group. Chairman Hui Ka Yan is currently being investigated for suspected illegal crimes. In December 2023, China Evergrande was granted a 7th adjournment of debt restructuring & liquidation hearing by 8 weeks (4th Dec 2023 to 29th Jan 2024), with China Evergrande instructed by the Hong Kong judge to inform all creditors & public on restructuring plan at least 1 week before next hearing. China Evergrande had been reported to propose exchanging debts for 30% shareholding in Hong Kong-listed subsidiaries and 17.8% shareholding in China Evergrande. China Evergrande creditors were reported to be seeking to convert debts into controlling equity stakes in China Evergrande new debt restructuring proposal. China Evergrande Group has a total of $327 billion liabilities in 2023 and China Evergrande Chairman Hui Ka Yan fortune has fell to $979 million from $42 billion in 2017. In late November 2023, Evergrande Property Services Group (Jinbi Property) filed a lawsuit against parent China Evergrande Group for using $1.89 billion of deposits (CNY 13.4 billion) as collateral to raise funds, with the $1.89 billion of collateralized funds withdrawn by banks and discovered in March 2022 (audit). Through an internal investigation, China Evergrande Group discovered 6 companies affiliated to Evergrande Property had provided $1.89 billion (CNY 13.4 billion) deposits as guarantees to 8 banks, to support fund-raising by parent China Evergrande Group (Dec 2020 to Aug 2021). The $1.89 billion were withdrawn by the 8 banks (loan terms triggered). China Evergrande Group Chairman Hui Ka Yan is currently being investigated for suspected illegal crimes. China Evergrande Group currently has a market capitalization of $422 million (30/11/23). In late November 2023, China Evergrande Chairman Hui Ka Yan 2 luxury Hong Kong properties at The Peak valued at more than $192 million (HKD 1.5 billion) had been reported to be seized by a creditor.
” Hong Kong Court Gives Order to Liquidate China Evergrande with $327 Billion Liabilities & Share Pricing Falling to $270 Million Market Value after Failure to Agree Restructuring Plan with Creditors, Liquidation Petition Filed by an Investor Top Shine in June 2022, Immediate Trading Halt for China Evergrande, Evergrande Property Services & China Evergrande New Energy Vehicle Group, Chairman Hui Ka Yan Investigated for Suspected Illegal Crimes “
China Evergrande with $327 Billion Liabilities Granted 7th Adjournment of Debt Restructuring & Liquidation Hearing by 8 Weeks on 4th Dec 2023 to 29th Jan 2024, Instructed to Inform All Creditors & Public on Restructuring Plan at Least 1 Week Before Next Hearing, China Evergrande Reported to Propose Exchanging Debts for 30% Shareholding in Hong Kong-Listed Subsidiaries & 17.8% Shareholding in China Evergrande
8th December 2023 – China Evergrande with $327 billion liabilities has been granted a 7th adjournment of debt restructuring & liquidation hearing by 8 weeks (4th Dec 2023 to 29th Jan 2024), with China Evergrande instructed by the Hong Kong judge to inform all creditors & public on restructuring plan at least 1 week before next hearing. China Evergrande had been reported to propose exchanging debts for 30% shareholding in Hong Kong-listed subsidiaries and 17.8% shareholding in China Evergrande. China Evergrande creditors were reported to be seeking to convert debts into controlling equity stakes in China Evergrande new debt restructuring proposal. China Evergrande Group has a total of $327 billion liabilities in 2023 and China Evergrande Chairman Hui Ka Yan fortune has fell to $979 million from $42 billion in 2017. In late November 2023, Evergrande Property Services Group (Jinbi Property) filed a lawsuit against parent China Evergrande Group for using $1.89 billion of deposits (CNY 13.4 billion) as collateral to raise funds, with the $1.89 billion of collateralized funds withdrawn by banks and discovered in March 2022 (audit). Through an internal investigation, China Evergrande Group discovered 6 companies affiliated to Evergrande Property had provided $1.89 billion (CNY 13.4 billion) deposits as guarantees to 8 banks, to support fund-raising by parent China Evergrande Group (Dec 2020 to Aug 2021). The $1.89 billion were withdrawn by the 8 banks (loan terms triggered). China Evergrande Group Chairman Hui Ka Yan is currently being investigated for suspected illegal crimes & company. China Evergrande Group currently has a market capitalization of $422 million (30/11/23). In late November 2023, China Evergrande Chairman Hui Ka Yan 2 luxury Hong Kong properties at The Peak valued at more than $192 million (HKD 1.5 billion) had been reported to be seized by a creditor.
China Evergrande Creditors Seek to Convert Debts into Controlling Equity Stakes in New Debt Restructuring Proposal, Total of $327 Billion Liabilities & Chairman Hui Ka Yan Fortune Fell to $979 Million in 2023 from $42 Bllion in 2017
1st December 2023 – China Evergrande creditors are seeking to convert debts into controlling equity stakes in China Evergrande new debt restructuring proposal. China Evergrande Group has a total of $327 billion liabilities in 2023 and China Evergrande Chairman Hui Ka Yan fortune has fell to $979 million from $42 billion in 2017. In late November 2023, Evergrande Property Services Group (Jinbi Property) filed a lawsuit against parent China Evergrande Group for using $1.89 billion of deposits (CNY 13.4 billion) as collateral to raise funds, with the $1.89 billion of collateralized funds withdrawn by banks and discovered in March 2022 (audit). Through an internal investigation, China Evergrande Group discovered 6 companies affiliated to Evergrande Property had provided $1.89 billion (CNY 13.4 billion) deposits as guarantees to 8 banks, to support fund-raising by parent China Evergrande Group (Dec 2020 to Aug 2021). The $1.89 billion were withdrawn by the 8 banks (loan terms triggered). China Evergrande Group Chairman Hui Ka Yan is currently being investigated for suspected illegal crimes & company. China Evergrande Group currently has a market capitalization of $422 million (30/11/23). In late November 2023, China Evergrande Chairman Hui Ka Yan 2 luxury Hong Kong properties at The Peak valued at more than $192 million (HKD 1.5 billion) had been reported to be seized by a creditor.
Evergrande Property Services Group Files Lawsuit Against Parent China Evergrande Group for Using $1.89 Billion of Deposits as Collateral to Raise Funds, $1.89 Billion of Collateralized Funds Had Been Withdrawn by Banks Discovered in March 2022, Chairman Hui Ka Yan Investigated for Suspected Illegal Crimes & Company
30th November 2023 – Evergrande Property Services Group (Jinbi Property) has filed a lawsuit against parent China Evergrande Group for using $1.89 billion of deposits (CNY 13.4 billion) as collateral to raise funds, with the $1.89 billion of collateralized funds withdrawn by banks and discovered in March 2022 (audit). Through an internal investigation, China Evergrande Group discovered 6 companies affiliated to Evergrande Property had provided $1.89 billion (CNY 13.4 billion) deposits as guarantees to 8 banks, to support fund-raising by parent China Evergrande Group (Dec 2020 to Aug 2021). The $1.89 billion were withdrawn by the 8 banks (loan terms triggered). China Evergrande Group Chairman Hui Ka Yan is currently being investigated for suspected illegal crimes & company. China Evergrande Group currently has a market capitalization of $422 million (30/11/23). In late November 2023, China Evergrande Chairman Hui Ka Yan 2 luxury Hong Kong properties at The Peak valued at more than $192 million (HKD 1.5 billion) had been reported to be seized by a creditor. China Evergrande Chairman Hui Ka Yan fortune has fell to $979 million from $42 billion in 2017. More info below:
China Evergrande Chairman Hui Ka Yan 2 Luxury Hong Kong Properties at The Peak Valued at $192 Million Seized by Creditor, Properties Pledged to Orix Asia Capital in November 2021
25th November 2023 – China Evergrande Chairman Hui Ka Yan 2 luxury Hong Kong properties at The Peak valued at more than $192 million (HKD 1.5 billion) has been reported to be seized by a creditor. The 2 properties had been pledged to Orix Asia Capital in November 2021. In October 2023, China Evergrande Chairman Hui Ka Yan fortune had fell to $979 million from $42 billion in 2017, with China Evergrande market value at currently at $401 million (27/10/23: HKD 3.1 billion). In late October 2023, China Evergrande Group postponed the court hearing to revise terms of proposed offshore debt restructuring deal. Earlier in October 2023, China Evergrande Group share trading resumed on 3rd October 2023 after trading was suspended on 28th September 2023 with market value at $531 million at end of trading week. China Evergrande Group Chairman Hui Ka Yan is being investigated for suspected illegal crimes, with the company issuing a notice of share trading suspension on 28th September 2023 until further notice. China Evergrande Group has a total of $327 billion liabilities in 2023 June with Hengda Real Estate facing a total of 1,946 pending litigation cases (28/9/23). More info below:
China Evergrande Chairman Hui Ka Yan Fortune Falls to $979 Million from $42 Billion in 2017, China Evergrande Market Value at $401 Million
28th October 2023 – China Evergrande Chairman Hui Ka Yan fortune has fell to $979 million from $42 billion in 2017, with China Evergrande market value at currently at $401 million (27/10/23: HKD 3.1 billion). In late October 2023, China Evergrande Group postponed the court hearing to revise terms of proposed offshore debt restructuring deal. Earlier in October 2023, China Evergrande Group share trading resumed on 3rd October 2023 after trading was suspended on 28th September 2023 with market value at $531 million at end of trading week. China Evergrande Group Chairman Hui Ka Yan is being investigated for suspected illegal crimes, with the company issuing a notice of share trading suspension on 28th September 2023 until further notice. China Evergrande Group has a total of $327 billion liabilities in 2023 June with Hengda Real Estate facing a total of 1,946 pending litigation cases (28/9/23).
China Evergrande Group Postpones Court Hearing to Revise Terms of Proposed Offshore Debt Restructuring Deal, Chairman Hui Ka Yan Investigated for Suspected Illegal Crimes & Company, Total $327 Billion Liabilities in 2023 June with Hengda Real Estate Facing Total of 1,946 Pending Litigation Cases
21st October 2023 – China Evergrande Group has postponed the court hearing to revise terms of proposed offshore debt restructuring deal. Earlier in October 2023, China Evergrande Group share trading resumed on 3rd October 2023 after trading was suspended on 28th September 2023 with market value at $531 million at end of trading week. China Evergrande Group Chairman Hui Ka Yan is being investigated for suspected illegal crimes, with the company issuing a notice of share trading suspension on 28th September 2023 until further notice. China Evergrande Group has a total of $327 billion liabilities in 2023 June with Hengda Real Estate facing a total of 1,946 pending litigation cases (28/9/23). China Evergrande Group: “The Company hereby announces that the Company has received notification from relevant authorities that Mr. Hui Ka Yan, an executive director of the Company and chairman of the board of directors of the Company, has been subject to mandatory measures in accordance with the law due to suspicion of illegal crimes. Trading in the shares of the Company on the Stock Exchange has been suspended with effect from 9:00 a.m. on 28 September 2023. The trading in the shares of the Company will remain suspended until further notice.” China Evergrande Group Material Litigation: “As of the end of August 2023, Hengda Real Estate had a total of 1,946 pending litigation cases which involved more than RMB 30 million each, with the total amount involved of approximately RMB449.298 billion. As of the end of August 2023, Hengda Real Estate’s unpaid debts due amounted to approximately RMB278.532 billion. In addition, as of the end of August 2023, Hengda Real Estate’s overdue commercial bills amounted to approximately RMB206.777 billion. As of the end of August 2023, Hengda Real Estate had completed the disposal of a total of 73 real estate projects through equity transfer, transfer of land and construction in progress, trust, nominee holding, etc. During August 2023, there were 163 new enforcement cases against Hengda Real Estate, involving total amount of approximately RMB9.128 billion. During August 2023, there were 68 new cases in which the equity interest in subsidiaries and investee companies held by Hengda Real Estate, as the party subject to enforcement, were frozen.” Earlier in September 2023, China Evergrande Group Chairman Hui Ka Yan seized Hong Kong mansion at 10B Black’s Link overlooking Victoria Harbour had been listed for $112 million. The 10B Black’s Link is one of 3 properties Hui Ka Yan-linked companies had bought in 2009. More info below:
China Evergrande Group Share Trading Resumed on 3rd October 2023 after Trading Suspended on 28th September 2023 with Market Value at $531 Million at End of Trading Week, Chairman Hui Ka Yan Investigated for Suspected Illegal Crimes & Company, Total $327 Billion Liabilities in 2023 June with Hengda Real Estate Facing Total of 1,946 Pending Litigation Cases
7th October 2023 – China Evergrande Group share trading had resumed on 3rd October 2023 after trading was suspended on 28th September 2023 with market value at $531 million at end of trading week. China Evergrande Group Chairman Hui Ka Yan is being investigated for suspected illegal crimes, with the company issuing a notice of share trading suspension on 28th September 2023 until further notice. China Evergrande Group has a total of $327 billion liabilities in 2023 June with Hengda Real Estate facing a total of 1,946 pending litigation cases (28/9/23). China Evergrande Group: “The Company hereby announces that the Company has received notification from relevant authorities that Mr. Hui Ka Yan, an executive director of the Company and chairman of the board of directors of the Company, has been subject to mandatory measures in accordance with the law due to suspicion of illegal crimes. Trading in the shares of the Company on the Stock Exchange has been suspended with effect from 9:00 a.m. on 28 September 2023. The trading in the shares of the Company will remain suspended until further notice.” China Evergrande Group Material Litigation: “As of the end of August 2023, Hengda Real Estate had a total of 1,946 pending litigation cases which involved more than RMB 30 million each, with the total amount involved of approximately RMB449.298 billion. As of the end of August 2023, Hengda Real Estate’s unpaid debts due amounted to approximately RMB278.532 billion. In addition, as of the end of August 2023, Hengda Real Estate’s overdue commercial bills amounted to approximately RMB206.777 billion. As of the end of August 2023, Hengda Real Estate had completed the disposal of a total of 73 real estate projects through equity transfer, transfer of land and construction in progress, trust, nominee holding, etc. During August 2023, there were 163 new enforcement cases against Hengda Real Estate, involving total amount of approximately RMB9.128 billion. During August 2023, there were 68 new cases in which the equity interest in subsidiaries and investee companies held by Hengda Real Estate, as the party subject to enforcement, were frozen.” Earlier in September 2023, China Evergrande Group Chairman Hui Ka Yan seized Hong Kong mansion at 10B Black’s Link overlooking Victoria Harbour had been listed for $112 million. The 10B Black’s Link is one of 3 properties Hui Ka Yan-linked companies had bought in 2009. More info below:
China Evergrande Group Chairman Hui Ka Yan Investigated for Suspected Illegal Crimes & Company Share Trading Suspended on 28th September 2023 Until Further Notice, Total $327 Billion Liabilities in 2023 June with Hengda Real Estate Facing Total of 1,946 Pending Litigation Cases
30th September 2023 – China Evergrande Group Chairman Hui Ka Yan is being investigated for suspected illegal crimes, with the company issuing a notice of share trading suspension on 28th September 2023 until further notice. China Evergrande Group has a total of $327 billion liabilities in 2023 June with Hengda Real Estate facing a total of 1,946 pending litigation cases (28/9/23). China Evergrande Group: “The Company hereby announces that the Company has received notification from relevant authorities that Mr. Hui Ka Yan, an executive director of the Company and chairman of the board of directors of the Company, has been subject to mandatory measures in accordance with the law due to suspicion of illegal crimes. Trading in the shares of the Company on the Stock Exchange has been suspended with effect from 9:00 a.m. on 28 September 2023. The trading in the shares of the Company will remain suspended until further notice.” China Evergrande Group Material Litigation: “As of the end of August 2023, Hengda Real Estate had a total of 1,946 pending litigation cases which involved more than RMB 30 million each, with the total amount involved of approximately RMB449.298 billion. As of the end of August 2023, Hengda Real Estate’s unpaid debts due amounted to approximately RMB278.532 billion. In addition, as of the end of August 2023, Hengda Real Estate’s overdue commercial bills amounted to approximately RMB206.777 billion. As of the end of August 2023, Hengda Real Estate had completed the disposal of a total of 73 real estate projects through equity transfer, transfer of land and construction in progress, trust, nominee holding, etc. During August 2023, there were 163 new enforcement cases against Hengda Real Estate, involving total amount of approximately RMB9.128 billion. During August 2023, there were 68 new cases in which the equity interest in subsidiaries and investee companies held by Hengda Real Estate, as the party subject to enforcement, were frozen.” Earlier in September 2023, China Evergrande Group Chairman Hui Ka Yan seized Hong Kong mansion at 10B Black’s Link overlooking Victoria Harbour had been listed for $112 million. The 10B Black’s Link is one of 3 properties Hui Ka Yan-linked companies had bought in 2009. More info below:
China Evergrande Group Chairman Hui Ka Yan Seized Hong Kong Mansion at 10B Black’s Link Overlooking Victoria Harbour Listed for $112 Million
23rd September 2023 – China Evergrande Group Chairman Hui Ka Yan seized Hong Kong mansion at 10B Black’s Link overlooking Victoria Harbour has been listed for $112 million. The 10B Black’s Link is one of 3 properties Hui Ka Yan-linked companies had bought in 2009. Separately, China property giant China Evergrande Group with $300 billion debts has cancelled creditor meetings (25/9/23 & 26/9/23) for $20 billion debt restructuring due to weaker than expected property sales. As of 30th June 2023, China Evergrande Group has around $327 billion in total liabilities. In mid-September 2023, A newly created China state-owned insurer Haigang Life Insurance will takeover China Evergrande insurance business.
China Property Giant China Evergrande Group with $300 Billion Debts Cancels Creditor Meetings for $20 Billion Debt Restructuring Due to Weaker than Expected Property Sales
23rd September 2023 – China property giant China Evergrande Group with $300 billion debts has cancelled creditor meetings (25/9/23 & 26/9/23) for $20 billion debt restructuring due to weaker than expected property sales. As of 30th June 2023, China Evergrande Group has around $327 billion in total liabilities. In mid-September 2023, A newly created China state-owned insurer Haigang Life Insurance will takeover China Evergrande insurance business. The announcement was made by China National Administration of Financial Regulation (NAFR) on 15th September 2023. Earlier in August 2023, China securities regulator had started investigating China Evergrande Real Estate for its accounting practices of recording pre-sold properties as revenue before 2020, changing accounting practices in 2021 and shifted $90 billion of revenue from previous years to liabilities on the balance sheet. Earlier in August 2023, China property giant China Evergrande Group with $300 billion debts and affiliate Tanji Holdings filed for Chapter 15 Bankruptcy Protection in New York on 17th August 2023 (United States, Chapter 15 is debt restructuring & does not involve bankruptcy petition). More info below:
Newly Created China State-Owned Insurer Haigang Life Insurance to Takeover China Evergrande Insurance Business, China Evergrande Group Has Over $300 Billion Debts
16th September 2023 – A newly created China state-owned insurer Haigang Life Insurance will takeover China Evergrande insurance business. The announcement was made by China National Administration of Financial Regulation (NAFR) on 15th September 2023. Earlier in August 2023, China securities regulator had started investigating China Evergrande Real Estate for its accounting practices of recording pre-sold properties as revenue before 2020, changing accounting practices in 2021 and shifted $90 billion of revenue from previous years to liabilities on the balance sheet. Earlier in August 2023, China property giant China Evergrande Group with $300 billion debts and affiliate Tanji Holdings filed for Chapter 15 Bankruptcy Protection in New York on 17th August 2023 (United States, Chapter 15 is debt restructuring & does not involve bankruptcy petition). More info below:
China Securities Regulator Investigates China Evergrande Real Estate for Accounting Practices Recording Pre-Sold Properties as Revenue Before 2020, Changed Accounting in 2021 & Shifted $90 Billion of Revenue from Previous Years to Liabilities
25th August 2023 – China securities regulator is investigating China Evergrande Real Estate for its accounting practices of recording pre-sold properties as revenue before 2020, changing accounting practices in 2021 and shifted $90 billion of revenue from previous years to liabilities on the balance sheet. Earlier in August 2023, China property giant China Evergrande Group with $300 billion debts and affiliate Tanji Holdings filed for Chapter 15 Bankruptcy Protection in New York on 17th August 2023 (United States, Chapter 15 is debt restructuring & does not involve bankruptcy petition). China Evergrande had defaulted in 2021 with offshore debt of $31.7 billion and is having ongoing restructuring talks in Hong Kong, Cayman Islands & BVI. More info below.
China Property Giant China Evergrande Group with $300 Billion Debts & Affiliate Tanji Holdings File for Chapter 15 Bankruptcy Protection in New York, Chapter 15 is Debt Restructuring & Does Not Involve Bankruptcy Petition, Defaulted in 2021 with Offshore Debt of $31.7 Billion & Ongoing Restructuring Talks in Hong Kong, Cayman Islands & BVI
18th August 2023 – China property giant China Evergrande Group with $300 billion debts and affiliate Tanji Holdings have filed for Chapter 15 Bankruptcy Protection in New York on 17th August 2023 (United States, Chapter 15 is debt restructuring & does not involve bankruptcy petition). China Evergrande had defaulted in 2021 with offshore debt of $31.7 billion and is having ongoing restructuring talks in Hong Kong, Cayman Islands & BVI. China Evergrande Group: “The Company noted relevant reports of the media and wishes to clarify that the Company is pushing forward its offshore debt restructuring as planned. As the Company’s U.S. dollar denominated notes are governed by New York law, the Company has applied to the U.S. Court under Chapter 15 of the United States Code for recognition of the schemes of arrangement under the offshore debt restructuring for Hong Kong and the British Virgin Islands. The application is a normal procedure for the offshore debt restructuring and does not involve bankruptcy petition.” Earlier in July 2023, China Evergrande New Energy Vehicle Group, the listed electric car company of China Evergrande, has resumed trading (29/7/23, HKD 1.24) with $1.7 billion market value after 16 months suspension since 1st April 2022, down from $100 billion market value in 2021 February.
Chapter 15 is a new chapter added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It is the U.S. domestic adoption of the Model Law on Cross-Border Insolvency promulgated by the United Nations Commission on International Trade Law (“UNCITRAL”) in 1997, and it replaces section 304 of the Bankruptcy Code. Because of the UNCITRAL source for chapter 15, the U.S. interpretation must be coordinated with the interpretation given by other countries that have adopted it as internal law to promote a uniform and coordinated legal regime for cross-border insolvency cases.
The purpose of Chapter 15, and the Model Law on which it is based, is to provide effective mechanisms for dealing with insolvency cases involving debtors, assets, claimants, and other parties of interest involving more than one country. This general purpose is realized through five objectives specified in the statute: (1) to promote cooperation between the United States courts and parties of interest and the courts and other competent authorities of foreign countries involved in cross-border insolvency cases; (2) to establish greater legal certainty for trade and investment; (3) to provide for the fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested entities, including the debtor; (4) to afford protection and maximization of the value of the debtor’s assets; and (5) to facilitate the rescue of financially troubled businesses, thereby protecting investment and preserving employment. 11 U.S.C. § 1501.
Generally, a chapter 15 case is ancillary to a primary proceeding brought in another country, typically the debtor’s home country. As an alternative, the debtor or a creditor may commence a full chapter 7 or chapter 11 case in the United States if the assets in the United States are sufficiently complex to merit a full-blown domestic bankruptcy case. 11 U.S.C. § 1520(c). In addition, under chapter 15 a U.S. court may authorize a trustee or other entity (including an examiner) to act in a foreign country on behalf of a U.S. bankruptcy estate. 11 U.S.C. § 1505.
China Evergrande New Energy Vehicle Group Resumes Trading with $1.7 Billion Market Value after 16 Months Suspension Since 1st April 2022, Down 98.3% from $100 Billion Market Value in 2021
28th July 2023 – China Evergrande New Energy Vehicle Group, the listed electric car company of one of China’s largest property developer China Evergrande, has resumed trading (29/7/23, HKD 1.24) with $1.7 billion market value after 16 months suspension since 1st April 2022, down from $100 billion market value in 2021 February. China Evergrande is one of the largest property developer in China. Earlier in July 2023, creditors are still unable to sell China Evergrande Group $1.1 billion Hong Kong headquarter after 1 year (China Evergrande Group bought at $1.6 billion in 2015), with the building renamed to YF Life, and 3 of 11 elevators were reported not to be running due to non-payment of maintenance fees. Earlier in June 2023, China Evergrande Wealth (Wealth Management) had failed to repay investors due to shortage of cash in May 2023, issuing a statement to investors on ongoing disposal of assets to repay investors. More info below.
Creditors Unable to Sell China Evergrande Group $1.1 Billion Hong Kong Headquarter after 1 Year, Bought at $1.6 Billion, Renamed to YF Life, 3 of 11 Elevators Were Not Running Due to Non-Payment of Maintenance Fees
21st July 2023 – Creditors are still unable to sell China Evergrande Group $1.1 billion Hong Kong headquarter after 1 year (China Evergrande Group bought at $1.6 billion in 2015), with the building renamed to YF Life, and 3 of 11 elevators were reported not to be running due to non-payment of maintenance fees. Earlier in June 2023, China Evergrande Wealth (Wealth Management) had failed to repay investors due to shortage of cash in May 2023, issuing a statement to investors on ongoing disposal of assets to repay investors. Separately, China Evergrande subsidiary Hengda Real Estate Group is facing 1,426 lawsuits totalling $49 billion (CNY 349.6 billion), with China Evergrande overdue debts totalling around $127 billion (CNY 900 billion). Earlier in 2023 May, 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.
China Evergrande Wealth Management Failed to Repay Investors in May 2023 Due to Shortage of Cash, Issues Statement to Investors on Ongoing Disposal of Assets to Repay Investors
2nd June 2023 – China Evergrande Wealth (Wealth Management) had failed to repay investors due to shortage of cash in May 2023, issuing a statement to investors on ongoing disposal of assets to repay investors. Separately, China Evergrande subsidiary Hengda Real Estate Group is facing 1,426 lawsuits totalling $49 billion (CNY 349.6 billion), with China Evergrande overdue debts totalling around $127 billion (CNY 900 billion). Earlier in 2023 May, 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.
China Evergrande Subsidiary Hengda Real Estate Group Faces 1,426 Lawsuits Totalling $49 Billion, China Evergrande Overdue Debts Around $127 Billion
2nd June 2023 – China Evergrande subsidiary Hengda Real Estate Group is facing 1,426 lawsuits totalling $49 billion (CNY 349.6 billion), with China Evergrande overdue debts totalling around $127 billion (CNY 900 billion). Earlier in 2023 May, 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.
China Evergrande Real Estate Ordered to Pay $853 Million Compensation to Investor for Failing to Meet 4 Years Restructuring Timeline Agreement
19th May 2023 – 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 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.
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