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Worsening disaster at Evergrande, world’s most indebted developer By Reuters

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(Reuters) – A Hong Kong court docket ordered the liquidation of China Evergrande (HK:) Group on Monday.

Evergrande is the world’s most indebted actual property developer and has been on the centre of an unprecedented liquidity disaster in China’s property sector, which accounts for roughly 1 / 4 of the world’s second-largest financial system.

As soon as China’s top-selling developer, Evergrande’s monetary disaster turned public in 2021 and since then it and a string of its friends have defaulted on their offshore debt obligations amid slowing house gross sales and fewer new avenues for fundraising, triggering fears of wider contagion that would unfold to the nation’s banks.

Here’s a timeline of how Evergrande’s debt disaster has unfolded:

August, 2021

Many Evergrande initiatives throughout the nation halt building on account of overdue funds.

China’s central financial institution and banking watchdog summon senior executives and situation a uncommon warning that Evergrande should cut back its debt dangers and prioritise stability.

September, 2021

It misses two offshore bond coupon funds totalling $131 million. The funds have a grace interval of 30 days.

Evergrande engages monetary advisers to look at choices, warning of cross-default dangers amid plunging property gross sales.

November, 2021

Founder Hui Ka Yan sells 1.2 billion shares value HK$2.68 billion ($342.7 million), reducing his stake in Evergrande to 67.9% from 77%.

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March, 2022

Evergrande suspends buying and selling in its shares, citing its incapability to publish audited outcomes earlier than March 31, and an investigation of the property administration arm by which 13.4 billion yuan of deposits had been seized by banks.

November, 2022

A mansion belonging to Evergrande’s chairman in Hong Kong’s prestigious The Peak residential enclave is seized by lender China Building Financial institution (OTC:) (Asia).

December, 2022

Evergrande says it has resumed work on 631 pre-sold and undelivered initiatives.

January, 2023

Evergrande says its then auditor PricewaterhouseCoopers resigned amid disagreements over issues referring to the audit of its 2021 accounts.

February, 2023

An impartial committee finds Evergrande’s administrators fell “beneath requirements” by way of their involvement in diverting loans secured by unit Evergrande Property Providers to the group.

March, 2023

Evergrande proclaims plans for the restructuring of its offshore debt, giving collectors a basket of choices to swap their debt into new bonds and equity-linked devices backed by the group and its two Hong Kong-listed corporations.

April, 2023

Evergrande says 77% of the holders of class-A money owed and 30% of the holders of class-C money owed have submitted their assist for the restructuring proposal.

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July, 2023

Evergrande posts a web lack of 476 billion yuan and 105.9 billion yuan for 2021 and 2022, respectively, versus a web revenue of 8.1 billion yuan in 2020 when its operation was regular.

August, 2023

Evergrande says it plans to hunt safety beneath Chapter 15 of the U.S. chapter code, which shields non-U.S. corporations which might be present process restructurings from collectors that hope to sue them or tie up belongings within the U.S.

Evergrande studies a 33 billion yuan loss in January-June, versus a 66.4 billion yuan loss in the identical interval final 12 months.

Buying and selling in Evergrande’s shares resumes after 17 months, with 79% of its market worth misplaced from when it was final traded.

September, 2023

China’s Nationwide Administration of Monetary Regulation approves the setup of a state-owned insurer to take over all of asset and liabilities of Evergrande Life Insurance coverage, a 50%-owned investee firm of Evergrande.

Police in southern China say they’ve detained some employees at Evergrande Monetary Wealth Administration, an oblique wholly-owned subsidiary of Evergrande.

Evergrande defers scheme assembly initially scheduled on Sept 25 and Sept 26, citing must reassess the phrases of proposed restructuring.

Evergrande says it’s unable to fulfill {qualifications} for the issuance of recent notes as its flagship onshore unit Hengda Actual Property Group was being probed by the Chinese language securities regulator for suspected violation of data disclosure.

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Evergrande says founder is being investigated over suspected “unlawful crimes”.

October, 2023

The Hong Kong Excessive Courtroom provides Evergrande a 5 week reprieve to return up cope with collectors, however says the following listening to in December would be the final earlier than a call is made on liquidating the corporate.

November, 2023

Evergrande makes last-minute revised debt restructuring proposal to offshore collectors forward of the listening to, looking for to avert a doubtlessly imminent liquidation.

December, 2023

Evergrande surprisingly obtained one other adjournment from the Hong Kong court docket, giving the developer extra time to finalise a revamped offshore debt-restructuring plan.

Evergrande’s advert hoc bondholder group says it firmly opposes the revised restructuring phrases.

January, 2024

Evergrande’s new vitality automobile unit Group says its vice chairman Liu Yongzhuo has been detained and is beneath felony investigation.

Evergrande’s advert hoc bondholder group joins the liquidation petition towards the developer.

Evergrande was issued a liquidation order by a Hong Kong court docket at a Jan 29 listening to.

($1 = 7.8201 Hong Kong {dollars})

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