Shares of Chinese developers tumbled on Thursday after the two companies announced plans to issue new shares. According to the British “Financial Times” report, the American investment company Oaktree Capital is in the process of expropriating a piece of land used as collateral by China’s Evergrande Group.
The builder has told creditors it aims to release an initial restructuring plan within the next six months. Evergrande said in a statement after a conference call with stakeholders on Wednesday that it “will continue to listen carefully to the opinions and suggestions of creditors.” The company plans to treat all classes of bondholders, such as domestic and foreign investors, equally, with the help of its financial advisers, a company executive said on a conference call, according to people familiar with the matter.
Other stressed real estate companies are ramping up fundraising efforts ahead of the Lunar New Year holiday. China Aoyuan Group Ltd. — which changed auditors ahead of key industry earnings season — completes real estate sale in Canada, Times China Holdings Ltd. issues new shares in Hong Kong, and Logan Group Ltd. sells equity-linked securities for existing Debt refinancing.
Evergrande’s shares fell as much as 9.6% at one point, while Times China and Logan’s one-day losses were 32% and 17%, respectively. The Bloomberg Intelligence real estate index fell 4.6%.
Major developments:
Evergrande plans to propose restructuring plan within six months
At the beginning of the new year, housing market crackdown drags down China’s economy
Oaktree Capital seizes Evergrande real estate assets: FT
Property crisis means Chinese cities sell land to themselves
Shimao’s $74M placement limits hurdles to cash-crunch fix
Logan raises funds (8:26am HKT)
Logan sold HK$1.95 billion ($250 million) in equity-linked securities and said it would use the net proceeds to refinance its existing debt. Unless redeemed earlier, the securities are paid semi-annually and expire on August 4, 2026.
Times China Share Placement (8:17am Hong Kong time)
Times China sold 117.7 million new shares at HK$3.40 each, according to a statement from the Hong Kong Stock Exchange. The price represents a 17.1% discount to the stock’s closing price on Wednesday.
Financial Times says Oaktree to acquire Evergrande assets (2:44am Hong Kong time)
Complete News Source : Hindustan Times
