At the beginning of February, Fitch lowered the rating of Yuzhou Group again, and lowered the company’s rating from “CCC -” to “RD (restrictive default)”.
At present, some people who claim to hold minority interests in the old notes have contacted the company and said that if the company does not redeem the old notes according to their conditions, it will take legal action against the company.
On March 7, Yuzhou Group, a 100 billion real estate enterprise, announced on the Hong Kong Stock Exchange that the interest on 8.5% of the priority notes due in 2023 will be due and payable on February 4, 2022, but the 30 day grace period has expired and the company has not paid the relevant amount before the expiration.
Among the 12 bonds in existence, there is one perpetual bond.
The decolorization rate is 66%.
Previously, Yuzhou Group said that it had completed the exchange offer of 2022 Notes and 2022 Notes II, and realized the renewal of the old bonds that exceeded 95% of the total principal amount of the old bonds.
A person from an overseas financial institution analyzed and believed that although the offer could avoid the breach of contract in the sense of law, they also usually regarded it as a signal of major challenges to the operation of enterprises.
Yuzhou Group wrote in the announcement, “The company begged all creditors not to take any radical legal action that might be detrimental to the realization of the above overall solution and undermine the stability of the company.
It was issued on January 25, 2017, with an issuance amount of US $300 million and an issuance price of US $1000.
Yuzhou Group achieved contract sales of 104.967 billion yuan in 2020, up 39.74% year on year.
The repayment dates of the remaining 11 bonds are distributed from 2022 to 2027.
The company expected to maintain dialogue with all creditors and begged all creditors to help the company actively promote the discussion plan.” Huang Lichong, president of Huisheng International Capital, said that this part of creditors who disagreed with the Yuzhou exchange offer, If Yuzhou does not pay its debts, creditors can apply for liquidation, which is generally approved and will accelerate the repayment process of the undue bonds.
The current purchase price was quoted at US $750.88, down by 25% from the issuance price of US $249.12.
Yuzhou Group said that the board of directors wanted to make it clear to all creditors that the company intended to treat all creditors fairly and was considering various feasible measures to implement the overall solution to the current situation of the company and its real estate industry, so as to ensure the long-term development of the company and protect the rights and interests of all investors.
Fitch once believed that Yuzhou Group was basically unable to enter the capital market at present and would have to rely on asset disposal, debt exchange or internal cash resources to repay its debt.
As of the date of this announcement, the outstanding principal of Note II in 2023 was US $500 million.
Yu Zhou said that the above non-payment has constituted an event of default under Note II in 2023.
On February 22, Yuzhou Group announced that its wholly-owned subsidiary Zhuoshun Co., Ltd., the company and Guo Yinglan (both the guarantor of Zhuoshun Co., Ltd.) had entered into a sales agreement with Taijie Co., Ltd., which agreed to purchase 85.64% of the total issued share capital of Jiancai Co., Ltd., and agreed to accept the company’s sales loan at a total cost of about HK $350 million.
.
A creditor who said that he held about US $1 million of old notes issued a statutory demand for repayment to Yuzhou.
The current coupon rate is 5.375%, and the yield to maturity is 11.7%.
On March 1, Yuzhou Group announced that the company was still under great pressure.
If you don’t want to miss the wonderful content pushed by this official account, please set the “construction technology” official account as a star, and click “Collection”, “Looking” and “Like” at the end of the article, so that each new article will appear in the subscription list at the first time.
As of the date of this announcement, the Company has not received any notice of immediate repayment from the holders of Note II in 2023, and as of the date of this announcement, no event of default has occurred in any notes for consent (except for Note II in 2023), new notes and US $300 million senior perpetual bonds issued by the Company (share code 05287).
As of August 6, 2021, Yuzhou Group had 12 investable US dollar bonds with a total issuance of US $5.71 billion and a current duration of US $545 million.
If the market financing channels continue to be closed, Yuzhou Group may run out of internal cash in order to repay its onshore and offshore debts.
//Tips for setting WeChat official account///NOCITCE has changed the push rules because of WeChat official account.
The contract sales area was 6.2647 million square meters, up 10.9% year on year.
Star logo setting method: enter the home page of the official account, click “…” in the upper right corner, click “Set as star logo”, and a yellow five pointed star will appear next to the public name (the same operation for Android and iOS users).
Yuzhou Group entered the “hundreds of billions of clubs” with the trend of dark horse, but only one year later, it encountered a debt crisis.
It was expected that it would continue to face the refinancing pressure of capital market debt in the next 6 to 9 months.
There are no bonds due in 2021.
The total annual repayment amounts are: $592 million, $1.15 billion, $1 billion, $900 million, $945 million, and $562 million, respectively.
These two companies that have defaulted on overseas debts have been applied for compulsory measures by a small number of creditors.
Compared with other similar real estate enterprises, Yuzhou Group’s desire to “survive with broken arms” appears stronger, and there are constant messages to boost confidence.
Yuzhou Group announced that the holders of Note II in 2023 could request immediate payment of the principal and accrued interest.
This means that the situation waiting for Yuzhou is likely to be the same as that of Huayuanian and Aoyuan.
