Two Dayang lines stand high on the E-House K chart: 18.37% on July 31 and 37.93% on August 1.
It stems from a great piece of good news.
The notice of change of residence shows，The foreign debt restructuring plan has successfully won the support of more than 75% of creditors and submitted a petition to the Cayman Court and the Hong Kong High Court on or around July 31, 2023. On August 1st, the approval rating of the creditors of the change of residence rose to 82.04%.
In accordance with market practice, the support of more than 75% of creditors is a positive indicator of the restructuring plan and meets the requirements of entering the court process. This means that the offshore debt restructuring of E-House has been substantially completed.
This fully illustrates that capital markets vote with their feet.
In the debt-ridden real estate industry, the vast majority of thunderstorm enterprises are still moving forward in the dark, while debt restructuring plans are rare: one is Sunac China, the other is Yi Ju.
Some media have compared these two approvers to "those who rely on the shore", but looking at the performance of the various industries as a whole, they can be divided into three types of portraits: those who go ashore, those who come ashore, and those who earn money.
A few days ago, from the central to the local government, a series of good news will accelerate the promotion of the debt restructuring plan of real estate enterprises.
(1) disembark
Before going ashore, Yiju was also a member of the debt storm.
Downstream companies are dragged down by liquidity and debt risks faced by upstream developers. As the largest service provider in the industry, E-House has accumulated debt on the one hand and huge accounts receivable on the other.
The company has an income of about 8.865 billion yuan in 2021, a profit and loss of about 12.264 billion yuan, and a profit of 439 million yuan in 2020. By April 2022, E-House officially defaulted on its foreign debt.
How to solve the debt?
Zhou Xin, chairman of the board of directors of Yiju Enterprise Group, saw the debt resolution plan put forward by a number of housing enterprises, saying that it could be used for reference, but it could not be copied. He made a deep reflection, thinking that E-house is a light asset company, and it is necessary to design a set of innovative scheme in line with its own characteristics with the greatest sincerity and within its ability.
Zhou Xin said that it is necessary to provide a solution within the scope of the company's ability with the greatest sincerity.
In April 2023, the Foreign debt restructuring Plan of E-habitation was announced, which mainly includes priority notes with an interest rate of 7.625% in 2022 and 7.60% in 2023, with a total principal of US $598 million, and convertible notes held by BABA, totaling HK $1.0319 billion.
In response to these three overseas debts, E-House provides the following solutions:
It is proposed to raise about HK $480 million through the rights issue of shareholders, pay part of the principal and interest income of the creditors in cash, and promise that the major shareholders will underwrite it.
Second, E-House buys out 65% of the two core assets, namely the real estate data and consulting services business Kerry, and the online real estate marketing services business Tmall Haofang and Leju Holdings Ltd.
Third, E-House offered 15% of the restructured assets to encourage the management.
The most important feature of this program is that the easy house can directly eliminate the border foreign debt at one time and carry out light equipment. The plans of almost all housing companies also have a common feature: debt rollover, only to extend the debt for a long time, but still carry the debt forward.
He is debt-free and light, so he can go ashore for easy living.
(2) landing
In addition to the change of residence, Sunac China's debt restructuring has also made substantial progress, which is not easy.
On July 26th, the High Court of Hong Kong, China directed that a meeting of Sunac China's plan creditors would be held to consider and approve, as appropriate, the plan arrangements made by Sunac China and the plan creditors.
Sunac has entered the top four of the real estate industry, and the sales scale has climbed to 362 billion yuan. After it advanced by leaps and bounds, in May 2022, a $400 million debt was substantially defaulted and became a member of the thunderstorm housing company.
In 2022, Sunac China's revenue was 96.75 billion yuan, down 51.2% from the same period last year. The net loss of his mother was about 27.67 billion yuan, and the loss was about 10.59 billion yuan lower than the previous year.
Sun Hongbin is a famous undead bird in the real estate industry. he will never lie flat and is determined to resolve the crisis.
According to the US $9 billion overseas debt restructuring plan disclosed in March, it includes the restructuring of foreign debt into two major sectors: deleveraging and debt extension.
Sunac China plans to swap about $3 billion of debt through a debt-to-equity swap, including $1 billion of convertible bonds, a ceiling of $2.2 billion of compulsory convertible bonds and a 14.7 per cent stake in Sunac Services.
More than a month later, the plan had been supported by more than 75% of creditors. By June, the approval rating had reached 87%. This speed is the style that Sun Hongbin, a white knight, should have.
In order to speed up debt restructuring, Sun Hongbin showed new sincerity in June.
The head-to-head conversion share price of Sunac compulsory convertible bonds decreased from HK $10 per share to HK $6 per share, the minimum conversion share price of compulsory convertible bonds from HK $4.58 per share to HK $4 per share, and the minimum conversion share price of Sunac Services from HK $17 per share to HK $13.50 per share.
Due to the excessive amount of debt involved in financing, after Sun Hongbin took out some high-quality assets to repay the debt, the rest of the debt can only be rolled over for a maximum period of nine years.
In fact, debt rollover is also the most common practice of commercial debt. Such as: pattern annual exhibition period of 6.5 years, Xuhui exhibition period of 7 years, Evergrande Group extension period of 12 years, and so on.
But compared with them, Sunac China has landed and has a chance to catch his breath and start normal production and operation.
(3) struggle
However, in the pre-dawn darkness of real estate, the vast majority of thunderstorm companies are still struggling with debt.
They continue to carry out self-rescue, have introduced debt conversion plans, the sale of assets, debt rollover, new bond exchange, equity for debt, cash payment and so on, mixed together, arranged and combined.
In the second half of the year, progress has been made in the overseas debt restructuring plans of out-of-danger housing enterprises, such as in the mood for New year, Zhongliang Holdings, China Olympic Park, Central South Construction, and so on, but there is still a long way to go before "landing".
China's Olympic boundary foreign debt restructuring plan has been supported by 33.01% of creditors, and Zhongliang has signed a restructuring support agreement with members of the overseas creditors group, and only 38.5% of the creditors have agreed.
It took China South Construction nearly a month to raise its creditor support for the restructuring plan for its US dollar bond JIAZHO 11.504Universe 07ax 24 from 37 per cent to 48.6 per cent. Negotiating with creditors is bound to be an arduous process.
Prior to this, Zhongnan Construction has received notice on the suspension of the relevant winding-up petition. If the formal suspension application is successful, it will provide the necessary conditions for the full implementation of the reorganization. China-South Africa construction said that the average time from the start of debt restructuring to the approval of holders is one to two years.
In addition, fancy year is also working with a group of foreign bondholders to determine the offshore debt restructuring plan, but there is no timetable.
Then, in the process of changing the debt of real estate enterprises, Evergrande is always an unavoidable topic. At present, Evergrande's overseas debt restructuring plan still has a long way to go. In its first game with foreign creditors, it collapsed because of differences in the "debt-to-equity swap" part, and has failed to reach the 75% support threshold ever since.
Not long ago, Evergrande reissued Evergrande Property Services's financial report, Evergrande's three annual reports, announced Evergrande Property Services's 13.4 billion yuan repayment plan, and China Evergrande New Energy Vehicle resumed trading. For a while, the media rushed to report its debt of 24400 yuan. Comparing it with the GDP of many provinces, even the list of suppliers owed was listed.
It is reported that Evergrande offshore debt restructuring plan related to the voting meeting will be held on August 22-23, whether the plan can be reached, Evergrande to avoid being issued by the court winding-up order the last factor.
And those enterprises that are affected by the upstream and downstream of real estate are also struggling and saving themselves.
At present, Quanzhu shares have been hooded and become St shares, and often shares are frozen; Guangtian shares have been given a risk warning, and the announcement on the progress of its reorganization has been accepted by the Shenzhen Intermediate people's Court; and Nantong Sanjian has been affected by Evergrande thunderstorm. Finally moved towards the situation of bankruptcy and reorganization.
Compared with them, it is also a member of the real estate industry chain, easy to live is undoubtedly lucky.
Note:
Real estate as a pillar industry in China, with the landing of the policy, corporate debt restructuring is bound to accelerate.
Hope that Yi Ju will be debt-free after landing, Zhou Xin will continue to play the role of real estate waiter.
Hope to see Sunchuang come ashore, Sun Hongbin is still a brave and fearless white knight.
Hope that enterprises struggling in debt will exchange their greatest sincerity for the support of creditors.
Finally, I hope that China's real estate industry will soon be like the poem "thirty thousand miles in Chang'an" by Li Bai: a leaf boat has sailed through the ten thousand mountains.