The first appearance of glimmer Huaxia Happiness has signed a debt restructuring agreement of 8.8 billion yuan

21st Century Business Herald reporter Kong Haili reported from Beijing

Huaxia Happiness's debt restructuring plan began to fall on paper.

On January 19, Huaxia Happiness disclosed the progress of the implementation of debt restructuring, saying that as of January 19, 2022, the Debt Restructuring Agreement signed by the company and its subsidiaries and relevant creditors involved a total of 8.857 billion yuan of debt and the total amount of debt relief and penalty exemption of 547 million yuan.

Among the above-mentioned debts that have signed the Debt Restructuring Agreement, the debt amount of bonds and debt financing instruments is 8.407 billion yuan, and the amount of other financial debts is 450 million yuan, all of which are subject to the repayment methods of "redemption", "offsetting" and "receiving".

"Redemption" means that about 57 billion yuan of the funds withdrawn from the sale of assets are used to redeem financial debts; "offsetting" means establishing a trust with about 22 billion yuan of assets such as holding properties, and using the share of trust beneficiary rights to offset about 22 billion yuan of financial debts; "receiving" means that the remaining financial debts of about 55 billion yuan are undertaken by Huaxia Happiness and gradually repaid.

According to the previously disclosed announcement, Huaxia Happiness's existing financial debt totaled 219.2 billion yuan, and the total amount of debt that has not been repaid as scheduled so far is 93.556 billion yuan (excluding interest), huaxia happiness said that the repayment of all the company's financial debts will be implemented under the unified arrangement of the Debt Restructuring Plan.

Less than a year after the liquidity problem occurred, the scale of Huaxia Happiness's debt default has risen to 107.8 billion yuan as of December 21, 2021, in order to resolve the company's debt risks and accelerate the orderly operation of the company, it has disclosed the "Huaxia Happiness Debt Restructuring Plan" on October 8, 2021, which was voted by the Debt Committee on December 9.

Huaxia Happiness summarized the debt restructuring plan as "belt", "exhibition", "redemption", "arrival", "pick-up", "belt", that is, the sale of assets to take away about 50 billion yuan of financial debts, "exhibition" that is, the extension or repayment of priority financial debts of about 35.2 billion yuan, "exchange", "arrival" and "acceptance" have been stated above.

The debt committee voted to implement the signing of the agreement of 8.8 billion yuan in one month after the vote, although it is still meager compared with the total amount, but with reference to the housing enterprises that have encountered liquidity problems in the past, the speed is not slow, and it has won an extension for Huaxia Happiness at the same time, but also for its subsequent recovery of bloodmaking precious time, for other housing enterprises that are also in liquidity difficulties have certain reference significance.

Huaxia Happiness also warned that the specific terms of the debt restructuring agreement still need to be negotiated with the creditors, there is a certain uncertainty in the time of signing the agreement, and the company will take "not evading the debt" as the basic premise, in accordance with the principles of marketization, rule of law, fairness and justice, and classified policies, to properly resolve the debt risk of Huaxia Happiness and protect the legitimate rights and interests of creditors according to law.

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