Evergrande Financial Panic - Corona is not the only Contagion China is exporting

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mindlessobserver said:
Foreign bond holders stating that have received no communication from the company for a month now, and that efforts to reach the Chinese Government about the status of more then 6 billion dollars in debts payable have gone without response. Investment analysts are now warning of an uncontrolled collapse of the company.

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The investor group which holds more than US$6 billion worth of bonds calls the CSRC’s rejection of Evergrande’s application a ‘complete surprise’
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Okay, wait a minute. I'm not programmed to understand the labyrinthine and contradictory systems of Modern Finance™, so let me see if I've got something about this correct.
So, this company, whose CEO or whatever is actively under investigation by the Chinese dotgov, has been trying (or "trying") to unfuck its debt for the last two years or so. Now that it's threatening to go supercritical and detonate a large portion of the Chinese economy (at the very least), the bagholders are suddenly surprised that the dotgov is putting a proverbial gun to their head and saying "Shut up, we're not done looting yet"?
Which might become an actual gun because lol Divine Mandate of Rule says "fuck you, got mine"?

Realistically, what would happen if the company (with or without the government's direction) defaults, other than upwards of several hundreds of billions of dollars vanishing into a plume of lead-laden smoke? Because I'm not even sure the entities participating in this finance scheme we attempt to call markets know what the fuck is going on, but I at least have the excuse of being a retarded TI-87.
 
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mindlessobserver said:
Country Garden has defaulted on almost 200 Billion dollars. I can't even comprehend that much money tbqh. Rumors are the execs have fled the country which is being denied.

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You're going to default on one hundred and eighty-six billion dollars of debt, because you're so broke you can afford the fifteen and a half million dollars of interest payments?! Rust Belt farmers strung out on meth have a better understanding of basic financial inflow/outflow than these useless dickheads.

At this point, I'm convinced that the global financial markets are better lead by a bunch of stoners than who we've got now. They'd still be jaw-droppingly retarded with the funds, but when shit like this happens, you'd at least get the circus sideshow of a gaggle of revenue agents on orders to flip every possible couch cushion they can find for loose change.
 
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Meth up rust belt farmers and stoners understand and know there is no golden parachute waiting for them when they shit the bed with other people's money. And those people will come looking for them for compensation or vengeance.

When in the financial markets and legitimate businesses, corporate heads are celebrated by their peers when they shit the beds and have their golden parachutes waiting for them. To go to the next business to repeat everything all over again and again.
 
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Uranus Pink said:
Meth up rust belt farmers and stoners understand and know there is no golden parachute waiting for them when they shit the bed with other people's money. And those people will come looking for them for compensation or vengeance.

When in the financial markets and legitimate businesses, corporate heads are celebrated by their peers when they shit the beds and have their golden parachutes waiting for them. To go to the next business to repeat everything all over again and again.
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you forget that those are chinese corporate heads. the best they'll get is a golden rope or bullet. not for fucking up but making china look bad.
 
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So if China go supernova right doesn't that mean America who's manufacturing has been completely gutted. Well also be impacted in a critical way to the point where there
economy could also go supernova?
 
mindlessobserver said:
Foreign bond holders stating that have received no communication from the company for a month now, and that efforts to reach the Chinese Government about the status of more then 6 billion dollars in debts payable have gone without response. Investment analysts are now warning of an uncontrolled collapse of the company.

Click to expand...
Same for country garden after whore of a CEO was caught funneling money to Foundation based in Hong Kong where it would've moved to safe harbors in US then in Bahamas and Cayman Island. Corruption on top of crashing market is one hell of a drug. US like Europe is too spineless to ban travel of these leeches and freeze assets like what they did with Russian oligarchy
 
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Glowie said:
Same for country garden after whore of a CEO was caught funneling money to Foundation based in Hong Kong where it would've moved to safe harbors in US then in Bahamas and Cayman Island. Corruption on top of crashing market is one hell of a drug. US like Europe is too spineless to ban travel of these leeches and freeze assets like what they did with Russian oligarchy
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It is in the US' best interest to allow that money to be repatriated and taxed before moving elsewhere. Every Chinese oligarch that absconds with their ill-gotten gains are taking a sliver of China's warchest away with them.

NyQuilninja said:
So if China go supernova right doesn't that mean America who's manufacturing has been completely gutted. Well also be impacted in a critical way to the point where there
economy could also go supernova?
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One of the reasons China is eating shit is that US companies are moving their factories out. In 2023 it makes more sense to manufacture in Mexico or the US. Short of that, they are moving to Vietnam/Thailand.
 
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Netizennameless said:
It is in the US' best interest to allow that money to be repatriated and taxed before moving elsewhere. Every Chinese oligarch that absconds with their ill-gotten gains are taking a sliver of China's warchest away with them.


One of the reasons China is eating shit is that US companies are moving their factories out. In 2023 it makes more sense to manufacture in Mexico or the US. Short of that, they are moving to Vietnam/Thailand.
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True however that's a slow long game if it happens the impact will still be felt and could have lasting effects
 

Evergrande told to submit debt plan by Dec. 4 or face liquidation​

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HONG KONG -- A Hong Kong court has given debt-laden property developer China Evergrande Group until Dec. 4 to come up with a revised restructuring plan or face liquidation.

Evergrande defaulted on its offshore debt nearly two years ago and has been at the center of the country's property sector crisis.
On Monday, Justice Linda Chan said this will be the "last" adjournment before a decision is made on the winding-up order.
"This case should be given one last opportunity to see whether it can come up with a revised restructuring proposal utilizing shares through other major asset operating companies and inject [capital] into the restructuring vehicle," Chan said.

She added that the embattled property developer needs to come up with a "concrete" plan before the next hearing, otherwise it will be liquidated. The adjournment will allow the company to work out a deal that would give greater returns to creditors in the event of a liquidation.

Evergrande's shares fell as much as 23% in the morning trading session on Monday.
The company had been working on a restructuring proposal for nearly two years, but the sudden detention of founder Hui Ka Yan, who was confirmed to be under investigation last month for suspected criminal activities, has complicated the plans.
The hearing on Monday was the fifth adjournment since Top Shine Global, an offshore creditor, filed a winding-up petition against the company in June 2022.

Evergrande filed for bankruptcy protection in the U.S. in August, but those proceedings have been adjourned.
Once China's largest property developer, Evergrande has been under financial stress from debt accumulated over years, while slumping sales have hit its cash position following a government crackdown on the sector.

It has failed to finish houses and pay suppliers and has been hashing out a plan to reorganize $20 billion of debt with offshore creditors.
In September, Evergrande said it was unable to issue new debt due to a probe by China's securities regulator into a key subsidiary, Hengda Real Estate Group.

A lawyer representing the largest group of creditors involved in the deal said there were concerns over the company being unable to issue new shares but there could be solutions if Evergrande cooperated "constructively."
"We need to do that immediately, without any delay, and ... the company needs to be prepared to show willingness to come up with solutions that might overcome these hurdles," said Neil McDonald, a partner at Kirkland & Ellis.
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Evergrande's liquidation is ordered by Hong Kong court​

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HONG KONG -- A Hong Kong court on Monday ordered the liquidation of China Evergrande Group, the heavily indebted developer at the heart of the property crisis in Asia's biggest economy.

After Evergrande failed over the weekend to reach a deal to restructure more than $300 billion in liabilities, Justice Linda Chan granted a winding-up petition filed by offshore creditors more than a year ago.

Citing an "obvious lack of progress" and "the insolvency of the company," Chan told a packed courtroom, "I consider that it is appropriate for the court to make a winding-up order against the company, and I so order a winding-up order."

Alvarez & Marsal, a consultancy, was later appointed as the official liquidator in the case and will meet with Evergrande's management to discuss next steps, its officials told a news conference.

"Our priority is to see as much of the business as possible retained, restructured, and remain operational," said Tiffany Wong, A&M managing director of restructuring.

The winding-up will occur as the Chinese property sector struggles to recover from the pandemic. It will also provide a test case for a 2021 arrangement on cross-border insolvency procedures that enable Hong Kong decisions to be recognized in mainland courts.

The trading of Evergrande shares in Hong Kong was suspended during the morning session after falling more than 20%. Trading was also halted in two other Hong Kong-listed units, Evergrande Property Services Group and China Evergrande New Energy Vehicle Group, after they dropped 3% and 18%, respectively.

Evergrande could not be reached for comment. Top Shine Global, an offshore creditor that filed the winding-up petition against China Evergrande Group in June 2022, declined to comment.

"The company has only itself to blame for the wind-up," Fergus Saurin, a lawyer at Kirkland & Ellis who represents bondholders with $4 billion in debt, told reporters after the hearing. "The company has failed to engage with us. There has been a history of last-minute engagement, which has gone nowhere."

Evergrande also filed for bankruptcy protection in New York last August, seeking to protect its U.S. assets from creditors in an offshore restructuring.

Chan said in a December hearing that the court would have to issue a winding-up order if the Chinese property developer did not provide a "concrete" restructuring plan.

Lawyers for the company had argued that the detention of its founder, Xu Jiayin, also known as Hui Ka-yan, had delayed its efforts to come up with a proposal.

Hengda Real Estate Group -- Evergrande's core onshore subsidiary -- faces 2,053 cases involving more than 30 million yuan each, totaling 490.06 billion yuan ($68.3 billion). It had unpaid debts of 316.39 billion yuan, plus overdue commercial bills of 205.53 billion yuan as of the end of November, according to an Evergrande filing at the end of December.

Evergrande also faces court cases from one of its onshore creditors. Evergrande Property Services Group, the developer's subsidiary, said it had started legal proceedings against a slew of firms, including Evergrande itself, to recover 11.4 billion yuan of deposit certificate pledge guarantees, according to a filing on Friday night on the Hong Kong bourse.

On Jan. 25, Evergrande announced it had entered an agreement to sell part of a development subsidiary company in the southeastern city of Shantou in a deal worth 304 million yuan, according to a filing on the Hong Kong Exchange.
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