At the same time, the company will also actively engage in dialogue with bondholders to seek and implement various ways to address current liquidity issues.
On October 18, 2021, Moody’s, a rating agency, confirmed the family rating (CFR) of Xiangsheng Holding’s “B2” company and the “B3” senior unsecured rating of the bonds issued.
Specifically, the document number of the enforcement ruling is: (2022) Zhe0681 Zhibao No.
The equity of the subsidiary was subject to judicial freeze.
At present, the repayment date has passed, but the news that this nearly $20 million debt has not yet been repaid makes people daydream.
Fitch believes that the credit risk of Xiangsheng Holdings Group is increasing given that there is not enough cash to repay large-scale matured capital market debt within the next five months.
However, due to various adverse factors such as macroeconomic, real estate market environment, financial environment, and multiple rounds of epidemics, the Group’s liquidity has experienced periodic problems.
from “B” to “B -“, looked forward to “negative”, and lowered its long-term issuance rating of US dollar bills from “B -” to “CCC”.
18, and the enforcement court is: Zhuji City People’s Court of Shaoxing City, Zhejiang Province.
If there is a slight difference, it will enter the ranks of explosive real estate enterprises.
In addition to the high debt on the surface, Xiangsheng Holdings also has a lot of private loans.
Moreover, Fitch said that Xiangsheng Holdings Group’s refinancing capacity for trust loans may have significantly deteriorated since the stock price plummeted in November.
In fact, Xiangsheng Holdings has previously been downgraded by several international rating agencies.
According to an insider at Xiangsheng Holdings, the account of the parent company “Xiangsheng Industrial Group Co., Ltd.” has also been frozen due to the judicial freeze of the subsidiary’s equity.
In November 2021, Xiangsheng Holdings, a dark horse real estate company that hides debts, faced many pressures, and its stock price plummeted by more than 50% in one day.
The company subject to judicial freeze is Zhejiang Hongyuan Venture Capital Co., Ltd., and the executor is Xiangsheng Industrial Group Co., Ltd., which is the holding company of Zhejiang Hongyuan.
Subsequently, the company issued an emergency announcement stating that the company was operating normally, that there had been no default on its existing debts, and that the company’s controlling shareholders had not pledged any shares.
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Moreover, in addition to repaying a total of $400 million in foreign debt within six months, recent enterprise investigations have also revealed that Xiangsheng’s holding subsidiary has been subject to judicial freeze, involving a total of more than 100 million yuan in funds.
S&P said that Xiangsheng Holdings’ continued use of cash to repay maturing debts would hinder the company’s liquidity in the next 12 months.
The company has appointed Shengde International Law Firm as its legal adviser to provide advice on relevant matters.
On January 18, 2022, Fitch downgraded Xiangsheng Holdings (Group) Co., Ltd.’s long-term foreign currency issuer default rating (IDR) from “B -” to “CC.”.
After Sunshine City, Zhengrong and Yuzhou, another 100 billion real estate enterprise officials will declare thunder.
In other words, the debt has not been fully resolved.
However, the note still has $19.47 million remaining outstanding.
The amount of equity and other investment interests held by the person subjected to enforcement is 106.25 million yuan, and the freezing period is until January 9, 2025.
The freezing date is from January 10th, 2022.
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According to the terms of the priority note, the company has a thirty day grace period to pay interest.
Ratings have been downgraded several times.
Xiangsheng Holding Group said that the company is evaluating its liquidity, overall business operation, and operating environment, actively implementing effective liquidity solutions, and continuously paying close attention to the development of the matter.
Because the problem with Xiangsheng Holdings is not just a matter of two days a day, the debt pressure is very obvious, and in the current industry situation, it is even more difficult to move forward.
Currently, the grace period has expired, and the company has not paid interest before the expiration.
Xiangsheng Holdings will face greater operational pressure in the next one to two years, including a possible decline in contract sales and a slowdown in cash recovery due to China’s tightening mortgage policy.
On January 18, Xiang Holdings announced that a senior note issued on January 23, 2021 and expiring on this month has partially completed the exchange offer, and the notes effectively submitted for exchange and accepted according to the exchange offer have been cancelled.
Xiangsheng is also a dark horse real estate enterprise that has suddenly soared in the past few years, and only entered one hundred billion clubs in 2018.
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The outlook was adjusted from “stable” to “negative”.
On November 3, 2021, according to a report released by S&P, S&P lowered the issuer’s credit rating of Xiangsheng Holdings (Group) Co., Ltd.
On March 21, Xiangsheng Holding Group announced that the company had failed to pay the interest of $12 million on the $200 million debt on schedule.
Before the announcement of default, Xiangsheng had already exposed signs of exposure.
Kelly Chen, Moody’s Assistant Vice President, said, “The negative outlook reflects Moody’s expectation that in the next 6-12 months, due to tight financing and weakening consumer sentiment, Xiangsheng Holdings’ contract sales will decline, which in turn will lead to a deterioration in the company’s financial indicators and liquidity.”.
According to the announcement, the company issued US dollar bonds with a principal of US $200 million and an annual interest rate of 12% due in 2023, with an interest of US $12 million due and payable on February 18, 2022.
