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Snowballing crisis at Evergrande, world's most indebted developer
China Evergrande Group (3333.HK) will offer asset packages that may include shares in its two overseas-listed businesses as a sweetener for restructuring offshore debt, the developer said, as a stifling liquidity crisis in the property sector continues.
Evergrande's restructuring proposal came on Friday as China's property sector, a key pillar for the economy, lurches from one crisis to another. The sector has seen a string of debt defaults by cash-squeezed developers.
Here is a timeline of events of how Evergrande's debt crisis unfolded:
August 2020
Regulators meet with Evergrande and other developers to introduce caps for three debt ratios in a policy dubbed the "three red lines".
Evergrande asks the Guangdong provincial government to approve a Shenzhen backdoor listing of most of the property assets of flagship unit Hengda Real Estate Group, saying it could otherwise face a cash crunch.
November 2020
Evergrande terminates the Shenzhen backdoor listing plan.
Evergrande Property Services Group (6666.HK) Hong Kong IPO raises $1.8 billion.
January 2021
China Evergrande New Energy Vehicle Group Ltd (0708.HK), Evergrande's electric vehicle unit, raises $3.4 billion by bringing in six new investors.
March 2021
Evergrande sells a $2.1 billion stake in online real estate and automobile marketplace Fangchebao in a pre-IPO deal.
June 2021
Evergrande says it will sell a $386 million stake in peer China Calxon Group Co Ltd (000918.SZ).
It meets one criterion of the 'three red lines', cutting interest-bearing debt to around 570 billion yuan from 716.5 billion yuan six months earlier.
Some commercial paper holders say they have not received payments from Evergrande.
July 2021
A court orders freezing a 132 million yuan bank deposit of Evergrande at the request of China Guangfa Bank Co Ltd over a loan extended to the developer.
Some banks in Hong Kong decline to extend new loans to buyers of two of Evergrande's uncompleted residential projects.
August 2021
Evergrande agrees to sell stakes in internet unit HengTen Networks Group Ltd (0136.HK) worth HK$3.25 billion.
The Guangzhou Intermediate People's Court centralises lawsuits against Evergrande nationwide, sources say.
Many Evergrande projects across the country halt construction due to overdue payments.
Hui Ka Yan steps down as chairman of flagship unit Hengda Real Estate.
China's central bank and banking watchdog summon senior executives and issue a rare warning that Evergrande must reduce its debt risk and prioritise stability.
Evergrande warns of liquidity and default risks if it fails to resume construction, dispose of assets and renew loans.
September 2021
Evergrande says online speculation about bankruptcy and restructuring is "totally untrue" but acknowledges "unprecedented difficulties".
It misses two offshore bond coupon payments totalling $131 million. The payments have a grace period of 30 days.
Evergrande engages financial advisers to examine options, warning of cross-default risks amid plunging property sales.
Evergrande says it will raise 9.99 billion yuan selling Shengjing Bank Co Ltd (2066.HK) shares.
October 2021
Advisers of some Evergrande dollar bondholders say they want more information and transparency.
Hong Kong's audit regulator says it is investigating Evergrande's 2020 accounts and audit by PwC.
China's vice premier, central bank and banking and securities watchdogs seek to reassure markets that spillover effects on the banking system and real estate sector from Evergrande's debt problems are controllable.
Evergrande abandons plans to sell a $2.6 billion stake in Evergrande Property Services to rival Hopson Development Holdings Ltd (0754.HK).
November 2021
Evergrande once again averts a destabilising default with a last-minute bond payment.
Evergrande sells entire stake in HengTen at steep discount for $273.5 million.
A government body takes over Evergrande's soccer stadium with a view to selling it, Reuters reports.
Chairman Hui sells 1.2 billion shares worth a total of HK$2.68 billion, lowering his stake in Evergrande to 67.9% from 77%.
December 2021
China's Guangdong province summons Chairman Hui after the developer said there was "no guarantee" it would have enough funds to meet debt repayments, while regulators sought to reassure markets.
Evergrande sets up a risk management committee.
Evergrande does not pay a coupon worth $82.5 million by the end of the grace period, triggering cross-default of its $19 billion offshore bonds.
January 2022
Southern city of Danzhou in Hainan province orders 39 buildings of Evergrande at a resort development be demolished.
Retail investors in Evergrande's wealth management products hold protests at its offices around the country, demanding repayment of their overdue investments.
Hengda Real Estate seeks onshore bondholders' approval to extend bond payment deadline for the first time. They reach agreement to delay payments for a 4.5 billion yuan bond for six months.
A key group of Evergrande's international creditors threatens to take action if Evergrande shows no urgency to resolve the default.
Evergrande begins talks with offshore creditors, adding it will issue a preliminary restructuring plan within six months.
Oaktree Capital Management appoints receivers for a plot of Evergrande's rural land in Hong Kong.
February, 2022
Evergrande sells stakes in four unfinished projects to state-owned companies, recovering around 1.95 billion yuan of capital and settling around 7 billion yuan of liabilities in the projects.
March, 2022
Evergrande suspends trading in its shares, citing inability to publish audited results before March 31 and an investigation of the property management arm in which 13.4 billion yuan of deposits were seized by banks.
Evergrande says to publish restructuring plan by the end of July.
June, 2022
An investor in Fangchebao files a winding-up petition against Evergrande for its failure to honour a share repurchase agreement.
July, 2022
Onshore bondholders, for the first time, reject Evergrande's proposal to postpone repayment of a bond, worth 4.5 billion yuan.
Evergrande CEO and CFO step down as an internal investigation finds 13.4 billion yuan deposits in the property management unit were used as collateral for pledge guarantees to facilitate financing by the group.
Evergrande is selling its Hong Kong headquarters via a tender.
Here is a timeline of events of how Evergrande's debt crisis unfolded:
August 2020
Regulators meet with Evergrande and other developers to introduce caps for three debt ratios in a policy dubbed the "three red lines".
Evergrande asks the Guangdong provincial government to approve a Shenzhen backdoor listing of most of the property assets of flagship unit Hengda Real Estate Group, saying it could otherwise face a cash crunch.
November 2020
Evergrande terminates the Shenzhen backdoor listing plan.
Evergrande Property Services Group (6666.HK) Hong Kong IPO raises $1.8 billion.
January 2021
China Evergrande New Energy Vehicle Group Ltd (0708.HK), Evergrande's electric vehicle unit, raises $3.4 billion by bringing in six new investors.
March 2021
Evergrande sells a $2.1 billion stake in online real estate and automobile marketplace Fangchebao in a pre-IPO deal.
June 2021
Evergrande says it will sell a $386 million stake in peer China Calxon Group Co Ltd (000918.SZ).
It meets one criterion of the 'three red lines', cutting interest-bearing debt to around 570 billion yuan from 716.5 billion yuan six months earlier.
Some commercial paper holders say they have not received payments from Evergrande.
July 2021
A court orders freezing a 132 million yuan bank deposit of Evergrande at the request of China Guangfa Bank Co Ltd over a loan extended to the developer.
Some banks in Hong Kong decline to extend new loans to buyers of two of Evergrande's uncompleted residential projects.
August 2021
Evergrande agrees to sell stakes in internet unit HengTen Networks Group Ltd (0136.HK) worth HK$3.25 billion.
The Guangzhou Intermediate People's Court centralises lawsuits against Evergrande nationwide, sources say.
Many Evergrande projects across the country halt construction due to overdue payments.
Hui Ka Yan steps down as chairman of flagship unit Hengda Real Estate.
China's central bank and banking watchdog summon senior executives and issue a rare warning that Evergrande must reduce its debt risk and prioritise stability.
Evergrande warns of liquidity and default risks if it fails to resume construction, dispose of assets and renew loans.
September 2021
Evergrande says online speculation about bankruptcy and restructuring is "totally untrue" but acknowledges "unprecedented difficulties".
It misses two offshore bond coupon payments totalling $131 million. The payments have a grace period of 30 days.
Evergrande engages financial advisers to examine options, warning of cross-default risks amid plunging property sales.
Evergrande says it will raise 9.99 billion yuan selling Shengjing Bank Co Ltd (2066.HK) shares.
October 2021
Advisers of some Evergrande dollar bondholders say they want more information and transparency.
Hong Kong's audit regulator says it is investigating Evergrande's 2020 accounts and audit by PwC.
China's vice premier, central bank and banking and securities watchdogs seek to reassure markets that spillover effects on the banking system and real estate sector from Evergrande's debt problems are controllable.
Evergrande abandons plans to sell a $2.6 billion stake in Evergrande Property Services to rival Hopson Development Holdings Ltd (0754.HK).
November 2021
Evergrande once again averts a destabilising default with a last-minute bond payment.
Evergrande sells entire stake in HengTen at steep discount for $273.5 million.
A government body takes over Evergrande's soccer stadium with a view to selling it, Reuters reports.
Chairman Hui sells 1.2 billion shares worth a total of HK$2.68 billion, lowering his stake in Evergrande to 67.9% from 77%.
December 2021
China's Guangdong province summons Chairman Hui after the developer said there was "no guarantee" it would have enough funds to meet debt repayments, while regulators sought to reassure markets.
Evergrande sets up a risk management committee.
Evergrande does not pay a coupon worth $82.5 million by the end of the grace period, triggering cross-default of its $19 billion offshore bonds.
January 2022
Southern city of Danzhou in Hainan province orders 39 buildings of Evergrande at a resort development be demolished.
Retail investors in Evergrande's wealth management products hold protests at its offices around the country, demanding repayment of their overdue investments.
Hengda Real Estate seeks onshore bondholders' approval to extend bond payment deadline for the first time. They reach agreement to delay payments for a 4.5 billion yuan bond for six months.
A key group of Evergrande's international creditors threatens to take action if Evergrande shows no urgency to resolve the default.
Evergrande begins talks with offshore creditors, adding it will issue a preliminary restructuring plan within six months.
Oaktree Capital Management appoints receivers for a plot of Evergrande's rural land in Hong Kong.
February, 2022
Evergrande sells stakes in four unfinished projects to state-owned companies, recovering around 1.95 billion yuan of capital and settling around 7 billion yuan of liabilities in the projects.
March, 2022
Evergrande suspends trading in its shares, citing inability to publish audited results before March 31 and an investigation of the property management arm in which 13.4 billion yuan of deposits were seized by banks.
Evergrande says to publish restructuring plan by the end of July.
June, 2022
An investor in Fangchebao files a winding-up petition against Evergrande for its failure to honour a share repurchase agreement.
July, 2022
Onshore bondholders, for the first time, reject Evergrande's proposal to postpone repayment of a bond, worth 4.5 billion yuan.
Evergrande CEO and CFO step down as an internal investigation finds 13.4 billion yuan deposits in the property management unit were used as collateral for pledge guarantees to facilitate financing by the group.
Evergrande is selling its Hong Kong headquarters via a tender.
