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reporter of china business network: chen ronghao editor of china business network: wei wenyi

on september 17, yuzhou group announced that its offshore debt restructuring plan had received the support and approval of the required majority of creditors. kaisa group also announced on september 16 that more than 75% of creditors supported the restructuring plan.

the reporter of "daily economic news" found that many real estate companies in trouble, including dexin china, china fortune land development, zhenro properties, and china aoyuan, have recently disclosed the latest progress of their debt restructuring. among them, dexin china, zhenro properties and china aoyuan announced the extension of their debt restructuring plans; while china fortune land development announced that as of the end of august 2023, 190.029 billion yuan of debt had been restructured, and more than 80% of the debt had been eliminated.

it is worth mentioning that r&f properties, which completed domestic and overseas debt restructuring two years ago, recently announced a debt default, with overdue debts exceeding 27.6 billion yuan. it is actively communicating with creditors to promote debt resolution.

regarding the debt restructuring of troubled real estate companies, bai wenxi, vice chairman of the china enterprise capital alliance, said in an interview with reporters on september 18 that whether the troubled real estate companies can formulate a reasonable and feasible restructuring plan and obtain the support of creditors is a prerequisite for the smooth progress of the restructuring, but the most important thing depends on the company's "blood-making" ability.

many real estate companies in trouble, including dexin china, china fortune land development, zhenro properties, and china aoyuan, have recently disclosed the latest progress of their debt restructuring. the picture shows a real estate project on zhushan road in nanjing. visual china photo

china fortune land development actively discloses restructuring

judging from the real estate companies that have disclosed the progress of their debt restructuring, some companies' debt restructuring has not yet been implemented, some are still in the stage of obtaining approval from creditors, and some have begun to announce the specific amount of debt restructuring.

the reporter noted that both yuzhou group and kaisa group are in the stage of negotiating restructuring plans with creditors. yuzhou group announced on september 17 that its offshore debt restructuring plan has obtained the support and approval of the required majority of plan creditors. among them, 99.28% of the creditors voted in favor at the meeting of plan creditors (class a), while the approval rate of the meeting of plan creditors (class b) reached 100%. kaisa group announced on september 16 that more than 75% of creditors supported the restructuring plan.

in addition, dexin china, zhenro properties and china aoyuan all announced the postponement of the announcement of debt restructuring agreements. dexin china announced on september 16 that as of the date of the announcement, the company had not reached or signed any commitment or formal agreement on its potential restructuring, and would make further announcements when appropriate; zhenro properties announced on september 13 that the final deadline of the restructuring support agreement has been further extended to september 19, 2024; china aoyuan announced on september 10 that the holding period of its offshore debt restructuring plan was extended by 6 months to march 20, 2025.

among the real estate companies in trouble, china fortune land development is the one that has disclosed the progress of debt restructuring more actively. according to the progress of debt restructuring disclosed by china fortune land development on september 13, as of the end of august this year, 190.029 billion yuan of debt has been restructured, the amount of debt that has not been repaid on time is 24.555 billion yuan, and the total amount of financial and operating debts offset by equity is about 16.935 billion yuan. in other words, as of the end of august this year, china fortune land development has restructured more than 80% of its debts.

the reporter noticed that r&f properties, which had completed domestic and overseas debt restructuring as early as 2022 (see "r&f properties' 8 domestic corporate bonds worth 13.5 billion yuan were successfully extended as a whole"), announced on september 11 that as of june 30 this year, the company's consolidated financial statements had overdue interest-bearing debts exceeding 10 million yuan, including an overdue balance of 8.454 billion yuan in bank loans, an overdue balance of 12.588 billion yuan in loans from non-bank financial institutions (trusts, financial leasing companies and other non-bank financial institutions), and an overdue balance of 6.57 billion yuan in other interest-bearing debts, all of which were overdue in principal and interest and had not been repaid when due.

r&f properties said it is actively communicating with relevant creditors, focusing on their concerns, formulating and implementing solutions, and continuously advancing the resolution of overdue debts. the company attaches great importance to the rights and interests of creditors, and will continue to pay attention to its own debt situation, increase sales and asset disposal efforts, and reasonably plan repayment arrangements based on operating conditions.

the ability of real estate enterprises to generate revenue is the key

although some real estate companies have made progress in debt restructuring, industry insiders believe that more real estate companies in trouble are still facing uncertainties such as delays in restructuring plans.

"for real estate companies in trouble, the most critical issue for whether the debt restructuring process is smooth is the rationality and feasibility of the debt restructuring plan, as well as the support and recognition of creditors." zheng lei, chief economist of samoyed cloud technology group, told reporters on september 18 that in this process, the specific problems faced by real estate companies in trouble are different, but usually include challenges such as capital shortage, liquidity crisis, huge debt scale, and difficulty in asset disposal.

in bai wenxi's view, whether the real estate companies in trouble can formulate a reasonable and feasible restructuring plan and obtain the support of creditors is a prerequisite for the smooth progress of the restructuring, but the most important thing depends on the company's "blood-making" ability.

"even if the restructuring is successful, it does not mean that the company is truly alive. the most important thing for the troubled company after the successful restructuring is to restore and enhance its own operation and 'blood-making' ability, as well as how to maintain stability in the changing policies and market environment." bai wenxi said, "after the debt restructuring is completed, the main operating challenges faced by real estate companies include restoring market confidence, accelerating sales, improving cash flow, optimizing asset-liability structure, and reducing financial costs. they need to repair the basic situation through active marketing, promoting sales and cash collection, and relying on sales to improve their own 'blood-making ability'."

the reporter noticed that judging from the progress of debt restructuring disclosed by real estate companies in trouble, many of them are still in the stage of coordination and communication with creditors. in the view of industry insiders, it is particularly important for real estate companies in trouble to balance the conflicts of interest with creditors and enhance the trust and support of creditors in the process of debt restructuring.

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