What is the current situation of Evergrande Group?

The present situation of Evergrande Group is not optimistic.

At present, the main crisis of Evergrande is that the capital flow has not been effectively solved, and then the bonds will expire one after another. If these bonds continue to default, Evergrande will always be in a situation of broken capital chain, which will make Evergrande's reputation worse and worse, and the recognition of their houses and products will be reduced, which will have a great impact on the company's performance and sales.

Evergrande Group has not declared bankruptcy. First of all, the national working group has been stationed in Evergrande Group for some time, and all of them have officially started their work. Evergrande has not been declared bankrupt for such a long time, which shows that the state does not think bankruptcy liquidation is a good scheme to repay debts.

At present, the debt scale of Evergrande Real Estate remains high, financing is blocked and sales are not ideal. In case of partial debt default, the core executives of Xu Jiayin and Evergrande Group may be included in the list of untrustworthy people, which will restrict high consumption and travel, and will also trigger some chain negative effects.

Major events of Evergrande Group in recent two years

On the evening of October 26th, 2022/kloc-0, China Evergrande announced that it would hold a telephone conference with its creditors on October 26th, 65438/kloc-0, reiterating that it would evaluate its own situation and formulate a restructuring plan to protect the rights of stakeholders.

On the evening of July 15, 2022, China Evergrande Group announced on the Hong Kong Stock Exchange that on July 13, 2022, the company received an additional resumption instruction from the Stock Exchange: the liquidation petition (or liquidation order, if any) against the company has been withdrawn or cancelled, and the appointment of any liquidator (whether temporary or not) has been cancelled.

On August 30th, 2022, China Evergrande received an additional resumption instruction from the Stock Exchange.

In September, 2022, there were 706 * * * projects in Guoan Building of Evergrande Group, of which 668 had resumed work and 38 had not. Companies in relevant regions will fully resume work before September 30. On September 2 1 day, Evergrande Real Estate announced that as of August 3 1 day, 2022, the management area of the Group was about 480 million square meters.

On April 3, 2023, China Evergrande formally signed an agreement with its creditors. According to the core terms of restructuring, Evergrande will issue new bonds to replace the original bonds; The term of the new bond is 4 years to 12 years, and the annual interest rate is 2% to 7.5%; No interest is paid in the first three years, and interest is paid at the beginning of the fourth year, paying 0.5% of the principal.

Reference to the above content: Baidu Encyclopedia-China Evergrande Group