Destabilizing speculation

Embattled developer scrambles to restructure debt as China’s property crisis deepens | Local company

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

HONG KONG — China Evergrande Group will offer asset packages that may include shares of its two overseas-listed companies as a sweetener for offshore debt restructuring, the developer said, as a liquidity crunch stifling in the real estate sector continues.

Evergrande’s restructuring proposal came on Friday as China’s property sector, a key pillar of the economy, teeters from one crisis to another. The industry has seen a series of defaults from cash-strapped developers.

Here is a timeline of events of how the Evergrande debt crisis unfolded:

August 2020

Regulators are meeting with Evergrande and other developers to introduce caps for three debt ratios in a policy dubbed the “three red lines.”

Evergrande is asking the Guangdong provincial government to approve a disguised listing from Shenzhen of most of the real estate assets of flagship unit Hengda Real Estate Group, saying it could otherwise face a cash crunch.

November 2020

Evergrande ends Shenzhen backdoor listing plan.

Evergrande Property Services Group’s Hong Kong IPO raises $1.8 billion.

January 2021

China Evergrande New Energy Vehicle Group Ltd., the electric vehicle unit of Evergrande, raises $3.4 billion by bringing in six new investors.

March 2021

Evergrande is selling a $2.1 billion stake in online real estate and auto market Fangchebao in a pre-IPO deal.

June 2021

Evergrande announces it will sell a $386 million stake in peer China Calxon Group Co Ltd.

It meets one of the “three red lines” criteria, reducing interest-bearing debt to about 570 billion yuan from 716.5 billion yuan six months earlier.

Some treasury note holders say they haven’t received payments from Evergrande.

July 2021

A court orders the freezing of a bank deposit of 132 million yuan of Evergrande at the request of China Guangfa Bank Co. Ltd. concerning a loan granted to the promoter.

Some Hong Kong banks are refusing to provide new loans to buyers of two of Evergrande’s unfinished residential projects.

August 2021

Evergrande agrees to sell stakes in internet unit HengTen Networks Group Ltd 0136.HK worth HK$3.25 billion.

The Guangzhou Intermediate People’s Court is centralizing the lawsuits against Evergrande across the country, sources said.

Many Evergrande projects across the country are halting construction due to late payments.

Hui Ka Yan steps down as chairman of Hengda Real Estate flagship unit.

China’s central bank and banking watchdog summon senior executives and issue a rare warning that Evergrande must reduce its debt risk and prioritize stability.

Evergrande warns of liquidity and default risks if it fails to resume construction, dispose of assets and renew loans.

September 2021

Evergrande says online speculation about bankruptcy and restructuring is “totally wrong”, but acknowledges “unprecedented difficulties”.

Two offshore bond coupon payments totaling $131 million are missing. Payments have a 30 day grace period.

Evergrande is hiring financial advisers to review options, warning of cross-default risks amid plummeting home sales.

Evergrande announces it will raise 9.99 billion yuan by selling shares of Shengjing Bank Co. Ltd.

October 2021

Advisors to some Evergrande dollar bondholders say they want more information and transparency.

Hong Kong’s audit regulator said it was investigating Evergrande’s 2020 accounts and PwC’s audit.

China’s vice premier, central bank, and banking and securities watchdogs are seeking to reassure markets that the ripple effects on the banking system and real estate sector from China’s debt woes Evergrande are controllable.

Evergrande is backing away from selling a $2.6 billion stake in Evergrande Property Services to rival Hopson Development Holdings Ltd.

November 2021

Evergrande once again avoids a destabilizing default with a last-minute bond payment.

Evergrande is selling its entire stake in HengTen at a steep discount for $273.5 million.

A government body is taking over Evergrande football stadium with a view to selling it, Reuters reports.

Chairman Hui sells 1.2 billion shares with a total value of HK$2.68 billion, reducing his stake in Evergrande to 67.9% from 77%.

December 2021

China’s Guangdong province summoned President Hui after the developer said there was ‘no guarantee’ he would have enough funds to meet debt repayments, as regulators sought reassurance the steps.

Evergrande is establishing a risk management committee.

Evergrande fails to pay a coupon worth $82.5 million at the end of the grace period, triggering the cross-default of its $19 billion offshore bonds.

January 2022

The southern city of Danzhou in Hainan Province is ordering the demolition of 39 Evergrande buildings at a resort complex.

Retail investors in Evergrande’s wealth management products are staging protests at its offices across the country demanding repayment of their overdue investments.

Hengda Real Estate is seeking approval from onshore bondholders to extend the first-time bond payment deadline. They reach an agreement to delay payments on a 4.5 billion yuan bond for six months.

A key group of Evergrande’s international creditors are threatening to take action if Evergrande shows no urgency to resolve the default.

Evergrande is starting talks with offshore creditors, adding that it will publish a preliminary restructuring plan within six months.

Oaktree Capital Management appoints receivers for a rural plot of Evergrande land in Hong Kong.

February 2022

Evergrande is selling stakes in four unfinished projects to state-owned companies, recovering about 1.95 billion yuan in capital and settling about 7 billion yuan in project debt.

March 2022

Evergrande is suspending trading in its shares, citing the inability to release audited results by March 31 and an investigation into the property management arm in which 13.4 billion yuan in deposits were seized by banks.

Evergrande says to publish its restructuring plan by the end of July.

June 2022

A Fangchebao investor files a liquidation petition against Evergrande for failing to honor a share repurchase agreement.

July 2022

Onshore bondholders for the first time rejected Evergrande’s proposal to postpone redemption of a bond worth 4.5 billion yuan.

Evergrande CEO and CFO step down as internal investigation finds 13.4 billion yuan deposits in property management unit were used as collateral for pledge guarantees to facilitate financing by the group.

Evergrande is selling its Hong Kong headquarters through a tender.