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Timeline: Snowballing crisis at Evergrande, world’s most indebted developer

HONG KONG: China Evergrande Group will provide asset packages which will embody shares in its two overseas-listed companies as a sweetener for restructuring offshore debt, the developer stated, as a stifling liquidity disaster within the property sector continues.

Evergrande’s restructuring proposal got here on Friday (Jul 29) as China’s property sector, a key pillar for the economic system, lurches from one disaster to a different. The sector has seen a string of debt defaults by cash-squeezed builders.

Here’s a timeline of occasions of how Evergrande’s debt disaster unfolded:

AUGUST 2020

Regulators meet with Evergrande and different builders to introduce caps for 3 debt ratios in a coverage dubbed the “three pink traces”.

Evergrande asks the Guangdong provincial authorities to approve a Shenzhen backdoor itemizing of many of the property property of flagship unit Hengda Actual Property Group, saying it may in any other case face a money crunch.

NOVEMBER 2020

Evergrande terminates the Shenzhen backdoor itemizing plan.

Evergrande Property Companies Group Hong Kong IPO raises US$1.8 billion.

JANUARY 2021

China Evergrande New Power Automobile Group Ltd, Evergrande’s electrical car unit, raises US$3.4 billion by bringing in six new traders.

MARCH 2021

Evergrande sells a YS$2.1 billion stake in on-line actual property and vehicle market Fangchebao in a pre-IPO deal.

JUNE 2021

Evergrande says it is going to promote a YS$386 million stake in peer China Calxon Group.

It meets one criterion of the ‘three pink traces’, chopping interest-bearing debt to round 570 billion yuan from 716.5 billion yuan six months earlier.

Some business paper holders say they haven’t acquired funds from Evergrande.

JULY 2021

A courtroom orders freezing a 132 million yuan financial institution deposit of Evergrande on the request of China Guangfa Financial institution Co Ltd over a mortgage prolonged to the developer.

Some banks in Hong Kong decline to increase new loans to patrons of two of Evergrande’s uncompleted residential tasks.

AUGUST 2021

Evergrande agrees to promote stakes in web unit HengTen Networks Group Ltd price HK$3.25 billion.

The Guangzhou Intermediate Folks’s Court docket centralises lawsuits towards Evergrande nationwide, sources say.

Many Evergrande tasks throughout the nation halt building attributable to overdue funds.

Hui Ka Yan steps down as chairman of flagship unit Hengda Actual Property.

China’s central financial institution and banking watchdog summon senior executives and challenge a uncommon warning that Evergrande should scale back its debt threat and prioritise stability.

Evergrande warns of liquidity and default dangers if it fails to renew building, eliminate property and renew loans.

SEPTEMBER 2021

Evergrande says on-line hypothesis about chapter and restructuring is “completely unfaithful” however acknowledges “unprecedented difficulties”.

It misses two offshore bond coupon funds totalling US$131 million. The funds have a grace interval of 30 days.

Evergrande en gaugesfinancial advisers to look at choices, warning of cross-default dangers amid plunging property gross sales.

Evergrande says it is going to elevate 9.99 billion yuan promoting Shengjing Financial institution Co Ltd shares.

OCTOBER 2021

Advisers of some Evergrande greenback bondholders say they need extra info and transparency.

Hong Kong’s audit regulator says it’s investigating Evergrande’s 2020 accounts and audit by PwC.

China’s vice premier, central financial institution and banking and securities watchdogs search to reassure markets that spillover results on the banking system and actual property sector from Evergrande’s debt issues are controllable.

Evergrande abandons plans to promote a US$2.6 billion stake in Evergrande Property Companies to rival Hopson Growth Holdings Ltd.

NOVEMBER 2021

Evergrande as soon as once more averts a destabilising default with a last-minute bond fee.

Evergrande sells total stake in HengTen at steep low cost for US$273.5 million.

A authorities physique takes over Evergrande’s soccer stadium with a view to promoting it, Reuters experiences.

Chairman Hui sells 1.2 billion shares price a complete of HK$2.68 billion, decreasing his stake in Evergrande to 67.9 per cent from 77 per cent.

DECEMBER 2021

China’s Guangdong province summons Chairman Hui after the developer stated there was “no assure” it could have sufficient funds to fulfill debt repayments, whereas regulators sought to reassure markets.

Evergrande units up a threat administration committee.

Evergrande doesn’t pay a coupon price US$82.5 million by the top of the grace interval, triggering cross-default of its US$19 billion offshore bonds.

JANUARY 2022

Southern metropolis of Danzhou in Hainan province orders 39 buildings of Evergrande at a resort growth be demolished.

Retail traders in Evergrande’s wealth administration merchandise maintain protests at its places of work across the nation, demanding reimbursement of their overdue investments.

Hengda Actual Property seeks onshore bondholders’ approval to increase bond fee deadline for the primary time. They attain settlement to delay funds for a 4.5 billion yuan bond for six months.

A key group of Evergrande’s worldwide collectors threatens to take motion if Evergrande exhibits no urgency to resolve the default.

Evergrande begins talks with offshore collectors, including it is going to challenge a preliminary restructuring plan inside six months.

Oaktree Capital Administration appoints receivers for a plot of Evergrande’s rural land in Hong Kong.

FEBRUARY 2022

Evergrande sells stakes in 4 unfinished tasks to state-owned corporations, recovering round 1.95 billion yuan of capital and settling round 7 billion yuan of liabilities within the tasks.

MARCH 2022

Evergrande suspends buying and selling in its shares, citing lack of ability to publish audited outcomes earlier than March 31 and an investigation of the property administration arm by which 13.4 billion yuan of deposits had been seized by banks.

Evergrande says to publish restructuring plan by the top of July.

JUNE 2022

An investor in Fangchebao recordsdata a winding-up petition towards Evergrande for its failure to honour a share repurchase settlement.

JULY 2022

Onshore bondholders, for the primary time, reject Evergrande’s proposal to postpone reimbursement of a bond, price 4.5 billion yuan.

Evergrande CEO and CFO step down as an inside investigation finds 13.4 billion yuan deposits within the property administration unit had been used as collateral for pledge ensures to facilitate financing by the group.

Evergrande is promoting its Hong Kong headquarters through a young.

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