A domestic bond was rolled over, and Fantasia denied being taken over by creditors

Reporter | Zhang Ziyi

Faced with the news of being taken over by creditors, Fantasia had to respond again.

On December 14, Fantasia Group issued a clarification statement saying that it had noted that some media reports had reported that Fantasia Group and its subsidiary Hong Kong Fantasia Investment Holdings Group Limited had been taken over by creditors, and Fantasia Group clarified and emphasized that Fantasia Group and Fantasia Investment had not been taken over.

Previously, there was market news that Fantasia Investment had applied for the appointment of a receiver by creditors as early as mid-October, and the appointment of directors involved Fantasia's share mortgage and internal loans, and according to the demands, Kroll could exercise various shareholder rights and interests as a receiver, such as the right to asset income and the right to dispose of it. Down to fantasia's common stock held by a company called Anchuang Group Limited.

Fantasia denied this, but according to the Viewpoint Real Estate Network, according to the Information of the Hong Kong Search Centre, as early as November 2, the documents of the appointee receiver were submitted for filing.

According to Tianyancha app, Hong Kong Fantasia Investment is a wholly-owned shareholder of Fantasia Group (China) Limited. Fantasia Group actually holds 504 companies, including many important regional companies and investment companies. Including Shenzhen Fantasia Real Estate Group Co., Ltd., Shenzhen Fantasia Equity Investment Fund Management Co., Ltd., Nanjing Fantasia Real Estate Development Co., Ltd. and so on.

Some people in financial institutions prejudged that if the bond is issued with the equity pledge of the company, the creditor will not take the assets that have no value, which must be the main assets involving the company. At present, Fantasia Investments in Hong Kong, which is currently being liquidated, may hold most of the assets of Fantasia Holdings in China.

Huang Lichong, president of Huisheng International Capital, told Interface News that if the name of the new receiver has appeared in the company registry, it is likely to have been taken over. According to experience, the enforcement party of this type of case has little significance in protesting, and the executed party has raised many objections, but it is difficult to win the lawsuit If the executed party is taken over, its assets may be sold at a 30% or 50% discount, and the losses are heavy, and it will definitely find a way to find a way to stop it. ”

On December 13, Fantasia Holdings (01777.hk) said in its resumption of trading announcement that Fantasia had not used the shares of Fantasia Life Services as a guarantee for the payment owed to TFISF, and that Fantasia Holdings would seek legal advice on unauthorized attempts to enforce the so-called guarantee to protect its legitimate rights and interests.

Behind Fantasia's repeated denials, the company's debt has also made some progress. In December this year, Fantasia will also face debt maturity pressure, and a "18 Fantasia" bond with a balance of 949 million yuan will mature on December 17. Fantasia has already held three meetings with the holders, and on December 16, a fourth creditors' meeting will be held.

In addition to the domestic bonds, Fantasia also had two MORE DOLLAR bonds maturing this month, with balances of $291.4 million and $249 million, respectively.

In resolving the debt problem, Fantasia has made some progress in selling assets.

Fantasia said in the announcement of the resumption of trading that on November 25, 2021, Cixi Huachuang Real Estate Development Co., Ltd., a wholly-owned subsidiary of Fantasia Holdings, signed an agreement with Hefei Yunshao Real Estate Partnership (Limited Partnership) (hereinafter referred to as "Hefei Yunshao") to transfer 49% of the interests of its subsidiary, Zhejiang Jialin Real Estate Development Co., Ltd., and the company's outstanding shareholder loan to Hefei Yunshao for a consideration of 200 million yuan. As for the reason for the sale of the above items, Fantasia Holdings said that it was to alleviate the liquidity problem. At the same time, it is expected that the sale will bring a loss of 56 million yuan.

In its announcement, Fantasia Controls updated the circumstances of the transfer of Lyre Holdings Limited (hereinafter referred to as "Lyre"), indicating that Fantasia Holdings is negotiating the terms of the supplementary agreement with the parties to the agreement to terminate the share transfer agreement. Previously, on October 26, Fantasia and Color Life Service jointly issued an announcement that due to the failure of Color Life Service to repay the loan on time, all the issued share capital of Linli Le had been transferred to Country Garden Service.

In addition, Fantasia also said in the announcement that a bond of 7.8% interest and principal of 730 million yuan by its subsidiary Fantasia Group (China) Co., Ltd. will be extended from maturity in 2022 to 2024. The interest payment plan, which is due on November 29, 2021, has also been amended to pay 20% interest on November 30, 2021 and 80% interest on November 29, 2022.

At this stage, for Fantasia, it is necessary to ensure that the main company, Hong Kong Fantasia Investment, is not taken over by creditors, and if it enters the process of being taken over by creditors and disposing of assets, what awaits Fantasia will be the future of being "dismembered".