China Evergrande Group (“Evergrande”) has appeared in the headlines of world financial news lately. The China property giant is on the brink of collapse.
A case of rapid growth and over-leveraging, here are some of the highlights of its situation:
⭕ $300 billion liabilities – almost half owing to contractors
⭕ Over 1.5 million house buyers have paid down payment for properties still under construction as of December*
⭕ $669 million in coupon payments for bond this year, including $83.5m due towards end September*
⬇️ Share price down 80% this year
“The potential fallout could have far-reaching implications that spill outside China’s borders.”
Who will be impacted?
🏦 Banks
👨👨👧👦 Homebuyers and investors
🛠️ Suppliers
❓ Other parties affected by the above
Evergrande is undergoing debt restructuring.
Read more here.
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