Recently, a "detailed list of bank loans owed by Evergrande" that is difficult to verify the source has gone viral on the Internet. A total of 33 banks are mentioned in the list, with a maximum amount of 29.3 billion yuan owed. Among them, Cangzhou Bank ranked 16th, involving 3.4 billion yuan owed by Evergrande Group. As soon as the news came out, Cangzhou Bank quickly issued a clarification announcement, saying that the Cangzhou Bank loan data involved in the "Detailed List of Bank Loans Owed by Evergrande" was seriously inaccurate, and Cangzhou Bank would reserve the right to pursue legal responsibility against the disseminator.
Cangzhou Bank also said that as of October 6, 2023, Cangzhou Bank had loaned 346 million yuan to Evergrande Group and its affiliates, and the borrower was Cangzhou Hengxiang Real Estate Development Co., Ltd. "In order to fully recover the loan, our bank filed a civil lawsuit with the Cangzhou Intermediate People's Court in July 2022 and won the lawsuit, and is currently implementing the collateral disposal procedures in accordance with the law." Although it is not a shocking 3.4 billion, the loan of 340 million yuan is also an astronomical amount, and Cangzhou Bank has begun to go through legal procedures, saying that the matter is not negotiable and must "meet each other".
Default, rollover, hard to pay! Real estate continues to explode!
During the Golden Week holiday, Evergrande's "negative news" is still endless, and the heavy thunder that has been repeatedly exposed has surprised the public. According to the paint procurement network, the recent thunder explosion in the real estate industry has not only not stopped, but has also become a more and more intense situation of blossoming everywhere, Sunshine City, Sunac and many other leading enterprises have been exposed to the news that bills are difficult to pay, debt rollover, cross-default and so on, and the thunder cloud instantly covers the entire industrial chain.
Sunshine City refused to declare its assets due to a bill recourse dispute, and the company's legal representative Lin Tengjiao was detained for 15 days. Because of this case, Lin Tengjiao also received the Yuhang District Court's "Consumption Restriction Order", restricting the cabin space of planes, trains, and ships of second class or above.
Jianye Real Estate announced that it failed to pay interest on its 7.75% senior notes due 2024 on time, and at the same time would completely stop overseas debt payments, triggering a cross-default on all of the company's senior notes.
Country Garden announced that it has not paid the principal amount of HK$470 million under a debt. A total of nine rollover plans for the Group's domestic corporate bonds with a total principal amount of approximately RMB14.7 billion have obtained the necessary consent from the relevant bondholders, giving the Group time and space to concentrate on resuming operations.
Hillenburg announces that the outstanding principal amount of $2 million of the Hillenburg Notes, together with accrued and unpaid interest on the Notes, remains outstanding and will not be settled at maturity. As the Hillenburg Notes will mature on 8 October 2023, the Notes will be delisted from The Stock Exchange of Hong Kong Limited at maturity.
Hong Yang Property announces that all outstanding principal amount of the US$200 million REDSUN 9.5 09/20/23 issued by the Company, together with accrued unpaid interest, will be due and payable on September 20, 2023, and the Company does not expect to pay such amounts on the due date.
Sunshine 100 China stated that in respect of the 12.0% Senior Notes due 2023, all outstanding principal amount and any accrued but unpaid interest will mature on October 3, 2023, however, due to liquidity problems caused by various factors such as the real estate industry, the Company was unable to repay the principal and accrued but unpaid interest on the Notes, so an event of default had occurred.
Sunac China applied to the US Court for Chapter 15 certification in connection with the restructuring of US dollar bonds to obtain the recognition of the US Court for the restructuring of its arrangement in Hong Kong courts. Earlier, Sunac China announced on September 18 that the overseas debt restructuring was finally approved by a high vote, with a total of 2,019 creditors voting, with a creditor pass rate of 99.75% and a total debt approval rate of 98.3%.
Downturn downstream, cold spread! Nearly 500,000 businesses closed
Previously, the paint procurement network reported that there are more than 10,000 paint companies established in 2023 and changed their business scope to cancellation/revocation/revocation/liquidation/closure within that year, and many people feel incredible about this number. In fact, these enterprises are not all coating manufacturers, but also include middlemen/distributors/traders in paint sales, and chemical enterprises whose business scope includes paint manufacturing, of which there are more than 4,000 domestic limited liability companies and joint stock limited companies, and the rest are basically self-employed and other organizational types.
The collapse of these coating companies is inseparable from the cold and weak catalyst of downstream ships, automobiles, real estate, furniture, electrical appliances and other industries. In the past year, 160,000 enterprises in the furniture industry have closed down and cancelled, 170,000 enterprises in the electrical industry have closed down and written off, 130,000 enterprises in the automotive industry have closed down and written off, more than 1,200 enterprises in the shipbuilding industry have closed down and cancelled, and more than 1,000 enterprises in bridges, steel structures and other industries have been recruited
The suppression of coating companies in the downstream market has gradually spread to supporting cooperative industries, and enterprises based on spraying, painting and other processing have also been affected. On the downstream side of spraying companies. Established in 2023, and within the year, the business scope was changed to more than 300 enterprises cancelled/revoked/revoked/liquidated/suspended, the business scope includes spraying services, spraying technology, spraying equipment, and ships, metals, automobiles, clocks, machinery, pipelines, handicrafts, building materials, construction, steel structures and other fields of spraying processing, enterprises are mainly in Guangdong, Shandong, Henan, Fujian, Jiangsu, Zhejiang and other regions.
In terms of painting companies. Established in 2023, the business scope was changed to more than 400 enterprises that were cancelled/revoked/revoked/liquidated/suspended during the year, and the business scope includes painting in ships, furniture, equipment, machinery, automobiles and other industries.
At the same time, this "cold air" bucks the trend, gradually transmits to raw material enterprises upstream of the industrial chain with a snowball effect, and brings negative impacts to a variety of direct raw material manufacturers/distributors/traders such as pigments, fillers, resins, emulsions, solvents, etc., with more than 3,000 enterprises established and "fallen" in 2023 alone.
Resin industry, established in 2023, and within that year, the business scope was changed to cancellation/revocation/revocation/liquidation/suspension of more than 600 enterprises, including resin manufacturing, resin sales and other business scopes, mainly in Guangdong, Zhejiang, Shandong, Hebei, Jiangsu and other regions.
Pigment industry, established in 2023, and the business scope was changed to more than 620 enterprises cancelled/revoked/revoked/liquidated/suspended during the year, mainly in Guangdong, Jiangsu, Sichuan, Shandong, Hebei and other regions.
Filler industry, established in 2023, and the business scope was changed to more than 1,200 enterprises that were cancelled/revoked/revoked/liquidated/suspended during the year, mainly in Guangdong, Jiangsu, Sichuan, Shandong, Hebei, Shanghai and other regions.
In addition, there is also this situation in the emulsion, solvent and other industries, the living space is squeezed, and the capital chain is also at risk of collapse. In other words, in addition to downstream users, the number of downstream supporting enterprises of coatings has reached nearly 500,000.
And the driving force of all this is the cold winter of the real estate industry. The core factor causing the liquidity crisis of real estate enterprises is that the houses are becoming more and more unsellable, resulting in slower and slower sales collection. In the context of the tightening of domestic real estate financing policies in previous years, many leaders have financed by issuing US dollar bonds overseas, and with the sharp decline of the upward cycle of real estate, the expansion model that housing enterprises rely on for growth is no longer viable, so more and more housing companies have begun to explode. In 2022, more than 60 mainland real estate enterprises defaulted on their US dollar bonds.
Whether it is the extension of overseas bonds or the default of domestic debts, in essence, behind these debts are the blood and tears of many industrial chain suppliers. "Mortgage off" or "equity bond" is not a good idea, because off-plan housing is ultimately difficult to liquidate, and the stock market is following in the footsteps of the bond market, and eventually there is a "Davis double kill". Over time, there will be more and more bad news, because the debts due will be bloodied in front of the public. The longer the time drags on, the more companies are "dragged to death", and by the time the real thunder explodes, perhaps the related enterprises are no longer able to complain and denounce, because there are few people who can speak.