(Reuters) – The chairman of China Evergrande Group has been positioned underneath police surveillance, Bloomberg Information reported on Wednesday, elevating extra doubts concerning the embattled developer’s future because it grapples with mounting dangers of liquidation.
Evergrande is the world’s most indebted property developer and has been on the centre of an unprecedented liquidity disaster in China’s property sector, which accounts for roughly 1 / 4 of the world’s second-largest financial system.
As soon as China’s top-selling developer, Evergrande’s monetary disaster grew to become public in 2021 and since then it and a string of its friends have defaulted on their offshore debt obligations amid slowing house gross sales and fewer new avenues for fundraising, triggering fears of wider contagion that might unfold to the nation’s banks.
Here’s a timeline of how Evergrande’s debt disaster has unfolded:
August, 2021
Many Evergrande initiatives throughout the nation halt development resulting from overdue funds.
China’s central financial institution and banking watchdog summon senior executives and problem a uncommon warning that Evergrande should scale back its debt dangers and prioritise stability.
September, 2021
It misses two offshore bond coupon funds totalling $131 million. The funds have a grace interval of 30 days.
Evergrande engages monetary advisers to look at choices, warning of cross-default dangers amid plunging property gross sales.
November, 2021
Hui sells 1.2 billion shares value HK$2.68 billion ($342.7 million), decreasing his stake in Evergrande to 67.9% from 77%.
March, 2022
Evergrande suspends buying and selling in its shares, citing its lack of ability to publish audited outcomes earlier than March 31, and an investigation of the property administration arm during which 13.4 billion yuan of deposits had been seized by banks.
November, 2022
A mansion belonging to Evergrande’s chairman in Hong Kong’s prestigious The Peak residential enclave is seized by lender China Building Financial institution (Asia).
December, 2022
Evergrande says it has resumed work on 631 pre-sold and undelivered initiatives.
January, 2023
Evergrande says its then auditor PricewaterhouseCoopers resigned amid disagreements over issues regarding the audit of its 2021 accounts.
February, 2023
An unbiased committee finds Evergrande’s administrators fell “beneath requirements” by their involvement in diverting loans secured by unit Evergrande Property Providers to the group.
March, 2023
Evergrande broadcasts plans for the restructuring of its offshore debt, giving collectors a basket of choices to swap their debt into new bonds and equity-linked devices backed by the group and its two Hong Kong-listed firms.
April, 2023
Evergrande says 77% of the holders of class-A money owed and 30% of the holders of class-C money owed have submitted their assist for the restructuring proposal.
July, 2023
Evergrande posts a web lack of 476 billion yuan and 105.9 billion yuan for 2021 and 2022, respectively, versus a web revenue of 8.1 billion yuan in 2020 when its operation was regular.
August, 2023
Evergrande says it plans to hunt safety underneath Chapter 15 of the U.S. chapter code, which shields non-U.S. firms which might be present process restructurings from collectors that hope to sue them or tie up property within the U.S.
Evergrande studies a 33 billion yuan loss in January-June, versus a 66.4 billion yuan loss in the identical interval final 12 months.
Buying and selling in Evergrande’s shares resumes after 17 months, with 79% of its market worth misplaced from when it was final traded.
September, 2023
China’s Nationwide Administration of Monetary Regulation approves the setup of a state-owned insurer to take over all of asset and liabilities of Evergrande Life Insurance coverage, a 50%-owned investee firm of Evergrande.
Police in southern China say they’ve detained some workers at Evergrande Monetary Wealth Administration, an oblique wholly-owned subsidiary of Evergrande.
Evergrande defers scheme assembly initially scheduled on Sept 25 and Sept 26, citing must reassess the phrases of proposed restructuring.
Evergrande says it’s unable to satisfy {qualifications} for the issuance of recent notes as its flagship onshore unit Hengda Actual Property Group was being probed by the Chinese language securities regulator for suspected violation of data disclosure.
A significant group of offshore collectors of Evergrande plan to affix a courtroom petition to liquidate the developer, if it would not submit a brand new debt revamp plan by subsequent month, Reuters studies, citing two sources conversant in the matter.
($1 = 7.8201 Hong Kong {dollars})
(Reporting by Clare Jim and Xie Yu; Further reporting by Roxanne Liu; Modifying by Sumeet Chatterjee and Kim Coghill)
