In order not to let the interests of creditors be damaged, we must actively perform the main responsibility of the debt.
Author | Li Baiyu
Source | Bond Market Watch
On November 1, Sunshine City Group Shares (000671. SZ) issued an announcement to make an exchange offer for three of its U.S. dollar bonds in exchange for a minimum acceptance of the outstanding principal amount of the notes held by the qualified holders, and sought consent to amend the management contract related to the notes.
Sunshine City said that the debt rollover is due to the company's short-term liquidity difficulties, and the company's fundamentals and production and operation have not changed substantially.
It is worth noting that the debt extension plan of Sunshine City has added a full guarantee from the actual controller Lin Tengjiao.
<h1 class="pgc-h-arrow-right" data-track="7" > take responsibility</h1>
In the announcement of the exhibition, Sunshine City admitted that the liquidity difficulties are caused by the severe situation in the real estate industry.
In the past year, the control of the "three red lines" has put pressure on the leverage ratio of housing enterprises, and the "five-file classification" has "double control" on real estate loans and personal housing loans, which puts forward higher requirements for the entire real estate industry at the level of capital operation efficiency.
According to the forecast of the three quarterly reports disclosed by real estate enterprises, a number of housing enterprises have increased their income without increasing profits, and the decline in net profit attributable to the mother has expanded compared with last year.
Even a leading housing enterprise has been trapped in the quagmire of hundreds of billions of dollars of debt for a while.
<h1 class="pgc-h-arrow-right" data-track="12" > performance obligations</h1>
Sunshine City's debt problem has attracted much attention. The debt extension plan of Sunshine City added the full guarantee of the actual controller, giving the creditors a "reassuring pill".
In terms of overall resolution, Sunshine City has also come up with a set of positive response plans. In the announcement, Sunshine City said that it will do a good job in the overall resolution plan, take all necessary measures such as the sale of assets and project equity to ensure liquidity, protect the legitimate rights and interests of creditors in accordance with the law, and preserve the principal and interest of investors.
In the severe overall situation of the industry, liquidity difficulties may become the "last straw" that crushes a company, but if handled properly, it may also become an opportunity to lighten up in the next stage.
In the past two years, it is not uncommon for high debts to top and debtors to "lie flat". Sunshine City "has the responsibility and takes the plan" this time, actively communicates with creditors, and expresses its determination not to evade debts.
"Do not let the interests of creditors be damaged, and fulfill the main responsibility of debt." Dare to shout such a slogan, which shows the responsibility of Sunshine City for debt.
At present, Sunshine City has set up a special group to ensure the orderly operation of the company's main business, while strictly controlling the budget, reducing expenditure, increasing sales, and promoting the recovery of funds to ensure the safety of short-term liquidity crisis.
For the development of enterprises, opportunities are important, but the crisis can see the responsibility of an enterprise. Although in the short term, the full guarantee may be a good man's tooth and blood, but in the long run, it has defended the credibility of the company in the capital market that is more valuable than gold. The trade-offs made by Sunshine City in the face of the crisis also provide a path for many enterprises that encounter difficulties.
Are you optimistic about the results of Sunshine City's exhibition plan?