China Evergrande world's most heavily indebted property developer bankruptcy

[Yohan]

https://www.asahi.com/ajw/articles/14984068

China Evergrande seeks Chapter 15 protection in Manhattan bankruptcy court

NEW YORK--China Evergrande, which is the world's most heavily indebted property developer and became the poster child for China's property crisis, on Thursday filed for protection from creditors in a U.S. bankruptcy court.

The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-U.S. companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the United States.

An affiliate, Tianji Holdings, also sought Chapter 15 protection on Thursday in Manhattan bankruptcy court.
A lawyer for Evergrande did not immediately respond to requests for comment.

Evergrande's filing comes amid growing fears that problems in China's property sector could spread to other parts of the country's economy as growth slows.

Since the sector's debt crisis unfolded in mid-2021, companies accounting for 40% of Chinese home sales have defaulted.

The health of Country Garden, China's largest privately run developer, is also worrying investors after the company missed some interest payments this month.

Evergrande recently had $330 billion of liabilities. A late 2021 default triggered a string of defaults at other builders, resulting in thousands of unfinished homes across China.

In a filing in the Manhattan bankruptcy court, Evergrande said it was seeking recognition of restructuring talks under way in Hong Kong, the Cayman Islands and the British Virgin Islands.

Evergrande has said creditors may be able to vote this month on a restructuring, with possible approval by Hong Kong and British Virgin Islands courts in the first week of September.

The company proposed scheduling a Chapter 15 recognition hearing for Sept. 20.

Last month, Evergrande posted a combined $81 billion loss for 2021 and 2022, prompting investor worries about the viability of a debt restructuring plan it proposed in March.

On Monday, its electric-vehicle unit China Evergrande New Energy Vehicle Group announced its own proposed restructuring.

That plan called for a $2.7 billion debt-for-equity swap, and a nearly $500 million share sale that would give Dubai-based automaker NWTN a 27.5% stake.

Evergrande NEV's combined 2021 and 2022 loss was nearly $10 billion.

Trading in China Evergrande shares was suspended in March 2022.

[Natural_Born_Cynic]

https://www.asahi.com/ajw/articles/14984068

China Evergrande seeks Chapter 15 protection in Manhattan bankruptcy court

NEW YORK--China Evergrande, which is the world's most heavily indebted property developer and became the poster child for China's property crisis, on Thursday filed for protection from creditors in a U.S. bankruptcy court.

The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-U.S. companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the United States.

An affiliate, Tianji Holdings, also sought Chapter 15 protection on Thursday in Manhattan bankruptcy court.
A lawyer for Evergrande did not immediately respond to requests for comment.

Evergrande's filing comes amid growing fears that problems in China's property sector could spread to other parts of the country's economy as growth slows.

Since the sector's debt crisis unfolded in mid-2021, companies accounting for 40% of Chinese home sales have defaulted.

The health of Country Garden, China's largest privately run developer, is also worrying investors after the company missed some interest payments this month.

Evergrande recently had $330 billion of liabilities. A late 2021 default triggered a string of defaults at other builders, resulting in thousands of unfinished homes across China.

In a filing in the Manhattan bankruptcy court, Evergrande said it was seeking recognition of restructuring talks under way in Hong Kong, the Cayman Islands and the British Virgin Islands.

Evergrande has said creditors may be able to vote this month on a restructuring, with possible approval by Hong Kong and British Virgin Islands courts in the first week of September.

The company proposed scheduling a Chapter 15 recognition hearing for Sept. 20.

Last month, Evergrande posted a combined $81 billion loss for 2021 and 2022, prompting investor worries about the viability of a debt restructuring plan it proposed in March.

On Monday, its electric-vehicle unit China Evergrande New Energy Vehicle Group announced its own proposed restructuring.

That plan called for a $2.7 billion debt-for-equity swap, and a nearly $500 million share sale that would give Dubai-based automaker NWTN a 27.5% stake.

Evergrande NEV's combined 2021 and 2022 loss was nearly $10 billion.

Trading in China Evergrande shares was suspended in March 2022.

That's what they get when they speculate on real estate in China and abroad.
There are so many ghost cities all across china where no one lives. The local party leader allowed it so it looks good for them, like artificial GDP growth and later they get promoted up in rank and next newbie takes their place and get promoted also..

[MarcosZeitola]

We're watching the beginning of the end of the entire global economic system. China's exports are down by as much as 14.5% last month alone, there's deflation, all the major property developers are going to shit, close to defaulting on loans and people aren't visiting China as tourists anymore, nor are Chinese going abroad... they're all bracing themselves for the upcoming crash, holding on to their money for dear life.

A guy who accurately predicted the collapse of 2008 just two days ago sold ALL his shares in Alibaba and various other Chinese holdings. He's expecting the stock markets to crash soon. I swear guys, something really big is going down soon. And given how interconnected the world economy has become... we'll ALL feel the burn.

[kukushka]

That's what they get when they speculate on real estate in China and abroad.
There are so many ghost cities all across china where no one lives. The local party leader allowed it so it looks good for them, like artificial GDP growth and later they get promoted up in rank and next newbie takes their place and get promoted also..

theres some truth to what you say but also you dont know the real situation over there, nobody does. the truth is, china lies but so does the west. the west loves using "independent" indie reporting to smear china, im thinking stuff like serpentza, radiofree asia, falun gong etc etc. redpill internet communities always fall for the anti-china FUD because it confirms their own biases but they dont realize it might be propaganda too.

I remember when covid first broke out and these videos of chinese people having seizures were circulating on /pol/. tons of gullible anti-chinese anons believed it, spread the videos and were fearmongering everywhere about covid but then it turned out that covid wasnt nearly as bad as what people thought. it turns out these anons probably got psyopped by the chinese themselves. what that example proves is that in the technology age you really dont know whats true or false, its information warfare. the chinese themselves could be the ones circulating bogus negative news about china in order to drown out actual important information in a sea of bullshit.

[Yohan]

..... dont know the real situation over there, nobody does. the truth is, china lies but so does the west.

It is not so easy to lie about the economic situation of a country, including China, where media are heavily censored.

-----------------------

https://tfipost.com/2022/07/china-is-on ... ankruptcy/

China, the second largest economy of the world, which holds the largest forex reserves of about USD 3,480 billion, is distant from bankruptcy in near future. But, the toughest lockdown, successive Covid waves and lower industrial output have brought the country on the verge of payment crisis.

...the real estate sector accounts for 29% of China’s GDP, the bankruptcy of real estate will bring China to bankruptcy.

...18% of China’s GDP comes from the export of goods and services. Due to the lower demand of products from the world, it has further aggravated the problem.

https://www.bloomberg.com/news/newslett ... on-of-debt

The Next Big Risk For China’s Economy Is $9 Trillion of Debt
Obligations held by local government financing vehicles have nearly doubled in five years

https://www.bloomberg.com/news/features ... #xj4y7vzkg

China’s $23 Trillion Local Debt Mess Is About to Get Worse

https://www.thestar.com.my/business/bus ... -get-worse

Hegang, a city with nearly a million people near the Russian border, had debt of more than double its fiscal income when it hit the headlines almost 18 months ago.

It was the first time a city administration had taken official emergency steps since the State Council unveiled rules in 2016 on how local governments, from counties to provinces, should deal with debt risks.

Hegang’s residents are now feeling the brunt of the fiscal clampdown.

During a recent visit to the city, locals complained about a lack of indoor heating in freezing winter temperatures, and taxi drivers said they were being slapped with more traffic fines.

Public school teachers worried about rumoured job cuts, and street cleaners endured two-month delays to their salaries.

Outside the city’s largest hospital, a middle-aged orderly wearing green scrubs and a mask said her employers unilaterally changed her work contract from a government-run medical facility to a third-party vendor, reducing benefits like paid overtime for working on holidays.

Her monthly wage of 1,600 yuan (RM1,034) (approx. USD 220,-) had been delayed by more than 10 days every month since late last year.

“I’m upset about the situation,” said the woman, who asked not to be identified in order to talk freely about her work conditions, as she pushed a wheelchair loaded with flattened cardboard boxes to an outdoor recycling point.

“Everything is so expensive. I can barely get three square meals a day.”

Hegang represents just the tip of the iceberg of a local government debt problem that’s making investors increasingly nervous and that threatens to be a drag on the world’s second-largest economy for years to come.

Goldman Sachs Group Inc estimates China’s total government debt is about US$23 trillion (RM104 trillion), a figure that includes the hidden borrowing of thousands of financing companies set up by provinces and cities.

Full articles, see links above.

I do not think, that everything you find in the media is nothing but lies.
There is also some truth in them, and it is true that China also has its problems....it's not a workers paradise, far away from it....

https://time.com/6289559/china-inequali ... rosperity/

China’s economic woes
In recent weeks, senior Chinese officials held urgent meetings with business leaders to discuss revitalizing the economy. The country’s youth unemployment rate has climbed to a record 20.4% in April, and then to 20.8% in May, according to the National Bureau of Statistics. (When officials revealed that they considered anyone working at least an hour a week to be employed, speculation abounded online that the real unemployment rate is in fact much higher.

This has come as a rude awakening for millions of Chinese young adults, who have long been told that studying hard would come with the reward of financial stability. In response, Chinese authorities have urged them to swallow their pride and accept lower-end jobs—a proposition that has left many feeling betrayed.

[Moretorque]

The thing that gets me is how stupid the sheeple still are, with compound interest upon compound interest you can only go deeper into debt and insolvency. This is the biggest con job ever perpetrated on humanity and the idiots still can't figure.

The Commies end up owning it all through usury so they have to train the sheeple to rent everything from them, Yohan you really should wake up. Yes all the media does is lie because the banks tell them to for like millions of dollars " credits " a year for a good lying news anchor.

[Yohan]

https://markets.businessinsider.com/new ... ses-2023-7

China's property woes continue to mount with another developer posting steep losses

China's property-sector woes continue to mount with Shimao Group, one of the country's many developers that have defaulted on their debt, announcing crushing losses.

A protracted real-estate downturn in the world's No. 2 economy has seen property firms grapple with heavy debt burdens and sluggish demand for new property, with potential homebuyers prioritizing savings in a slowing economy.

Now Shimao Group has released its financial results after a 16-month delay and various threats to delist the company. It posted a 48.6 billion yuan loss ($6.8 billion) over two years of trading, and today – after trading in its stock resumed for the first time since April 2022 – shares in the troubled firm fell by 67%.

Shimao's stock price decline is its biggest on record and is symptomatic of a wider crisis facing the sector. Last month, Evergrande, China's largest developer, announced a whopping $81 billion two-year loss ..

[Yohan]

markets.businessinsider.com/news/bonds/chinese-property-crisis-missed-bond-payments-economy-real-estate-2023-8

Country Garden Holdings – once China's largest developer by sales – failed to make coupon payments due Monday, investors who hold the firm's notes told Bloomberg.

The missed payments amount to $10.5 million of interest on a dollar bond maturing in 2026 and $12 million on another note maturing in 2030, per the report

Country Garden is one of the few remaining private developers still standing after a years-long downturn in the country's property sector.

This Chinese company is even not able to pay USD 10.5 million on time?

[Natural_Born_Cynic]

markets.businessinsider.com/news/bonds/chinese-property-crisis-missed-bond-payments-economy-real-estate-2023-8

Country Garden Holdings – once China's largest developer by sales – failed to make coupon payments due Monday, investors who hold the firm's notes told Bloomberg.

The missed payments amount to $10.5 million of interest on a dollar bond maturing in 2026 and $12 million on another note maturing in 2030, per the report

Country Garden is one of the few remaining private developers still standing after a years-long downturn in the country's property sector.

This Chinese company is even not able to pay USD 10.5 million on time?

Their really f*cked.

[MarcosZeitola]

theres some truth to what you say but also you dont know the real situation over there, nobody does. the truth is, china lies but so does the west. the west loves using "independent" indie reporting to smear china, im thinking stuff like serpentza, radiofree asia, falun gong etc etc. redpill internet communities always fall for the anti-china FUD because it confirms their own biases but they dont realize it might be propaganda too.

I remember when covid first broke out and these videos of chinese people having seizures were circulating on /pol/. tons of gullible anti-chinese anons believed it, spread the videos and were fearmongering everywhere about covid but then it turned out that covid wasnt nearly as bad as what people thought. it turns out these anons probably got psyopped by the chinese themselves. what that example proves is that in the technology age you really dont know whats true or false, its information warfare. the chinese themselves could be the ones circulating bogus negative news about china in order to drown out actual important information in a sea of bullshit.

The lies and deceptions are getting more blatant. For instance now China has stopped sharing any details of its youth unemployment percentage. It was at a record high until June and keeps rising monthly, now they're just pretending the issue doesn't exist:

https://www.nytimes.com/2023/08/15/busi ... yment.html

You'd have to be pretty gullible to not see China's royally f***ed. Just take a look at their real estate sector, the ghost cities, the millions of unfinished homes that people are still forced to pay sky-high mortgages over... the bubble is about to burst.

I'm not neccesarily gleeful about the prospects of China collapsing, however... people fail to take into account how interconnected all major economies are, and how a Chinese economic collapse will bite the West in the ass in a big way, too. But the whole BRICS fairytale certainly doesn't seem to be holding up under scrutiny and the Chinese miracle growth years are gone forever.

[Moretorque]

\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\

[kukushka]

..... dont know the real situation over there, nobody does. the truth is, china lies but so does the west.

It is not so easy to lie about the economic situation of a country, including China, where media are heavily censored.

-----------------------

I do not think, that everything you find in the media is nothing but lies.
There is also some truth in them, and it is true that China also has its problems....it's not a workers paradise, far away from it....

funny enough you didnt disprove anything I said:

theres some truth to what you say but also you dont know the real situation over there, nobody does. the truth is, china lies but so does the west. the west loves using "independent" indie reporting to smear china, im thinking stuff like serpentza, radiofree asia, falun gong etc etc. redpill internet communities always fall for the anti-china FUD because it confirms their own biases but they dont realize it might be propaganda too.

what you think I said: "everything negative the western media says about china is lies! china is number one!!!!!"

what I actually said: "there is some truth to the negative china reporting but the ultimate truth is, nobody really knows whats going on, or to what degree. theres simply too much information manipulation going on by both parties and sometimes in unexpected ways"

funny enough you repeated a lot of my own original points back to me and act like I didnt say them in the first place

as usual I write something moderate and the anti-chinese posters cant understand it and read what im saying through their own biases thus demonstrating the existence of their own biases. this is why anti-chinese posters cant be taken seriously when the topic is china, their own biases prevent them from seeing things clearly, even to the point where they cant objectively read a simple forum comment.

The lies and deceptions are getting more blatant. For instance now China has stopped sharing any details of its youth unemployment percentage. It was at a record high until June and keeps rising monthly, now they're just pretending the issue doesn't exist:

https://www.nytimes.com/2023/08/15/busi ... yment.html

You'd have to be pretty gullible to not see China's royally f***ed. Just take a look at their real estate sector, the ghost cities, the millions of unfinished homes that people are still forced to pay sky-high mortgages over... the bubble is about to burst.

I'm not neccesarily gleeful about the prospects of China collapsing, however... people fail to take into account how interconnected all major economies are, and how a Chinese economic collapse will bite the West in the ass in a big way, too. But the whole BRICS fairytale certainly doesn't seem to be holding up under scrutiny and the Chinese miracle growth years are gone forever.

the lies and deception getting more blatant (from your perspective) doesnt disprove my original points:

1.we dont know the real situation in china or to what degree

2.the west has a vested interest in lying and exaggerating

3.china also might be doing things to FUD itself in order to appear weaker than it really is. do you really think the birthplace of sun tzu wouldnt be able to appreciate this saying?

Appear weak when you are strong, and strong when you are weak

-granted, I think this is the more unlikely possibility but its still a possibility nonetheless, especially after seeing the whole /pol/ china covid victims video clip psyop happen in real time. during the age of information warfare, why take anything at face value?

do you not realize how long people have been claiming that china (or the US for that matter) are going to collapse any day now? I remember back in 2008 when alex jones said that the US was going to experience economic collapse and martial law was going to be instated. likewise I remember in 2021 when tons of people were saying that the vaxxes were going to depopulate the world in a few years yet here we are and this still isnt the case. in all three cases there were some *grains* of truth but the doomsayers were largely wrong in terms of the timing and severity of their predictions.

so do I think this could be the real end for china? yeah, thats possible. do I think its likely? no. just look at the record of people like serpentza and gordon chang etc, "two more weeks!". the real gullible one here is you.

of course youre gleeful about the prospects of china collapsing. do you think I havent read your other posts on the topic? why even bother lying about something like this, I already know youre not an objective poster when it comes to this topic

[Yohan]

theres some truth to what you say but also you dont know the real situation over there, nobody does....

The lies and deceptions are getting more blatant. For instance now China has stopped sharing any details of its youth unemployment percentage. It was at a record high until June and keeps rising monthly, now they're just pretending the issue doesn't exist:
-----
You'd have to be pretty gullible to not see China's royally f***ed. Just take a look at their real estate sector, the ghost cities, the millions of unfinished homes that people are still forced to pay sky-high mortgages over... the bubble is about to burst....

Here in Japan I think we are fairly good informed what is going on in China. It's not a nice neighbour, it is becoming more and more a military threat not only for Taiwan, but also for Japan and even for the Philippines and some other countries nearby.

The real situation within China is well-known and it is not possible for the Chinese government to censor it....
For example there are various reports about Chinas ghost cities, estimated about 64 million housing units are empty...



In China there is a huge gap between ordinary people, often not allowed to move to another city within China - the salary of ordinary people in not so well-known large cities within China - and about the rich elite.

Of course China is too large to fail, but in future the living standard in China is expected to decline considerably, nobody can deny this.

Expect in near future many foreign companies to reduce their presence in China or even to pull out and relocate and this will send hundreds of thousands of Chinese workers jobless in the streets....

[Yohan]

....of course youre gleeful about the prospects of china collapsing. do you think I havent read your other posts on the topic? why even bother lying about something like this, I already know youre not an objective poster when it comes to this topic

You are anyway far away to be an objective poster either LOL.
This is your reply to MarcosZeitola?

He is living in the Philippines and I cannot blame him - Philippines is a poor non-aggressive country with a very weak military and China is trying to take away from their people even the little they have - a large part of the South China Sea - not even respecting their economic zone for fishing.

[galii]