01 Exclusive | Evergrande Mortgages Xu Jiayin Mountaintop Mansion for Overdue Unpaid USD 260 Million Bond Grace

"Hong Kong 01" was exclusively exposed on Wednesday (27th). China Evergrande (3333) mortgaged Xu Jiayin's Hong Kong Peak Buli Path Mansion to CCB (Asia). It is expected to cash out 300 million Hong Kong dollars.

Mortgage details were also revealed on Thursday (28th), mainly used to repay the US$260 million (approximately HK$2.078 billion) bonds that have matured on October 3 and are in the grace period.

However, Evergrande’s debt crisis has not yet been resolved. In addition to the above-mentioned bonds with overdue principal and interest, Evergrande failed to pay US$45.17 million (approximately HK$350 million) in interest on September 29 for a bond due in 2024. Grace period Will expire on Friday (October 29).

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260 million U.S. dollar debt due and unpaid at the beginning of the month

According to the latest record of the Companies Registry on Thursday (28th), "Better Vision Limited" (Better Vision Limited), which owns Block B at No. 10 Buli Path, The Peak, added two documents signed on October 19, respectively. It is a mortgage (Mortgage) and a bond (Debenture).

The two charges are related to the US$260 million (approximately HK$2.078 billion) bond issued on October 3, 2019 by "Jumbo Fortune Enterprise Limited", a registered company in the British Virgin Islands (BVI) of Evergrande.

The bond has a coupon of 8.5% and matures on October 3, 2021, but Evergrande failed to pay as scheduled.

Evergrande Chairman Xu Jiayin, through his company, owns a detached house at Block C, No. 10, Buli Path, Peak. The company’s director has recently been changed to the "housekeeper" Tan Haijun.

The No. 10 Building B is also held by a related company of Evergrande, and the director is also Tan Haijun.

(Photographed by Liang Pengwei / Drawing by Hong Kong 01)

CCB (Asia) acts as the trustee in accordance with the instructions of the majority of creditors

According to the document, CCB (Asia) is the Security Trustee and acts on the instructions of the Majority Noteholders.

But the document did not disclose the amount of mortgages and bonds.

Both documents were signed by TAN Haijun, the director of Atos.

"Hong Kong 01" exclusively disclosed information last month that Tan Haijun was the "steward" of Xu Jiayin.

Evergrande Chairman Xu Jiayin, through his company, owns a detached house at Block C, No. 10, Buli Path, the Peak. The company’s director has recently been changed to the "housekeeper" Tan Haijun.

Building 10, Block B, is also held by a related company of Evergrande, and the director is also Tan Haijun.

The picture shows No. 10 Building B.

(Photo by Liang Pengwei)

Evergrande agreed to provide additional collateral in exchange for three months of grace

According to the financial think tank REDD earlier quoted two sources as saying that the maturity bond of this bond has been extended for more than three months. Since Evergrande agreed to provide additional collateral to bondholders, Evergrande and its creditors An agreement was reached at the beginning of the week.

Xu Jiayin, through Giant Hill Limited (Giant Hill Limited), owns a detached house at Block C, No. 10, Buli Path, Peak, with a market value of 800 million yuan, and serves as the controlling shareholder. However, Xu Jiayin resigned as a director in July and was replaced by a "housekeeper." Tan Haijun served.

The adjacent block 10, Block B, is held by "Atos" and has a market value of about 700 million yuan. According to the guidelines of the Monetary Authority, a maximum of 300 million Hong Kong dollars can be cashed out when mortgaged to the bank.

If this big house is mortgaged, it is still not enough to return the bond principal worth nearly 2.1 billion Hong Kong dollars.

Another HK$350 million expired interest has reached the default limit

Except for the US$260 million bonds that are due on October 3 and are in a grace period, Evergrande still has many bonds on the verge of default.

According to a report from Bloomberg News on Thursday (28th), Evergrande’s bond maturing in 2024 with a coupon rate of 9.5% will pay about 45.17 million U.S. dollars (about 350 million Hong Kong dollars) in interest. The issuer failed to meet the deadline on September 29. For interest payments, a 30-day grace period will expire on Friday (29th).

However, the principal and interest payments of Evergrande’s many US dollar bonds will gradually mature. Every time Evergrande has to "pump the water" to save the debt, it makes investors feel like a roller coaster ride every few weeks.

In the National Two Sessions in 2012, Evergrande Chairman Xu Jiayin ran away from reporters and became his classic photo. His Hermès belt was the focus.

(Xinhua News Agency)

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Last week, the total debt of 650 million Hong Kong dollars in interest paid exceeded 300 billion US dollars in debt

Before the end of the grace period last week, Evergrande paid another US$83.5 million (approximately HK$650 million) interest in interest on another US dollar bond maturing in 2022.

Evergrande’s total debt is more than US$300 billion (approximately HK$2.34 trillion). Once there is a bond, failure to pay interest or principal before the maturity and grace period may trigger debt default, which will have a ripple effect and trigger other US dollars. Debt cross default clause.

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Sale of Evergrande property, Wanchai Evergrande Center hits the rocks

China Evergrande (3333) sold the Evergrande property (6666) to Hopson Development (0754) for 20 billion yuan. The two parties held their own words and blamed each other on each other's responsibilities.

Market reports that Evergrande intends to sell Evergrande Center in Wanchai to Yuexiu Real Estate for US$1.7 billion, but the transaction hit the rocks.

Reuters quoted news as saying that Yuexiu abandoned the transaction due to the complicated financial situation of Evergrande.

Bloomberg earlier quoted people familiar with the matter as saying that the Chinese government asked Xu Jiayin to use his private wealth to ease the company's debt crisis.

▼Demonstrations by the suffering masters of Evergrande ▼

01 Exclusive | Evergrande Mortgage Xu Jiayin's Hilltop Mansion for 300 million yuan in cash 01 Exclusive | Evergrande Xu Jiayin's 1.5 billion Hong Kong Peak Property changed its name to Xu's "Steward" in July and "Bloomberg": Evergrande is preparing to negotiate "Bloomberg" with overseas creditors ：The mainland government urges Xu Jiayin to use his personal wealth to deal with Evergrande’s debt problem

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