Latest progress of Taihe debt restructuring: or break up with Shimao

 Latest progress of Taihe debt restructuring: or break up with Shimao

On July 30, Vanke officially became the potential battle throw of Taihe. The debt restructuring plan that Taihe should have given before September 30 has been postponed.

In recent years, among the real estate enterprises that have defaulted on their debts, Taihe has the largest volume. Debt restructuring is related to the future of Taihe. Similarly, activating the stock assets and resuming sales is the basis of whether Taihe can turn over.

Vankes recent entry seems to be earlier than originally planned.

After reviewing the details of the framework agreement signed by both sides on July 30, Vankes becoming a war investment requires the smooth restructuring of Taihe debt. After the transfer of stock rights, the two sides assisted in the completion of the companys equity management. However, as of November 26, the debt restructuring of Taihe has not yet been confirmed to be successful.

According to the initial agreement, Vanke has no debt, credit enhancement and financial assistance to Taihe. In addition, Vankes future war investment of 2.43 billion yuan is not enough compared with the debt of Taihe. In the view of some creditors of Taihe, it is not reassuring.

Vanke should have some key actions. The further back, the more anxious creditors will be. It is not only Taihe that needs the endorsement of Vanke, but also the creditor. On November 25, a relevant person in charge of Taihes creditor side told the times weekly that some creditors wanted Vanke to inject capital or enter the market as soon as possible.

The latest announcement of Taihes debt restructuring was on September 30. It said that the debt restructuring plan is still under negotiation, and some creditors still need time to complete internal approval. The announcement did not give a deadline for debt restructuring, but also said Vanke would like to become a war investor.

In other words, Vankes helping Taihe mediate the debt restructuring is also to improve its success rate of becoming the second largest shareholder of Taihe.

A reporter from time weekly reported on September 21 that the vice governor in charge of Fujian Province organized a special meeting on Taihe held by relevant functional departments of the provincial department, financial institutions, banks and other departments to discuss the issue of assisting Taihe.

Driven by all parties, in recent two months, creditors have made concessions. Some creditors have made oral commitments, but they need internal approval and signature. On November 25, Wang Yong, a person familiar with the matter, told the times weekly.

It is not enough to promote debt restructuring alone, but to revitalize the existing assets.

We cant always let the outside world mistakenly think that the two sides are in a love stage that is full of twists and turns. At the critical moment, someone has to poke open this layer of window paper. Zhang Yang told the times weekly that Vankes moves into the market now will not affect the progress of debt restructuring.

To promote debt restructuring, it is necessary for Taihe to resume the construction and sales of the existing land reserve.

According to the exclusive information of time weekly, Vanke is negotiating with China Huarong, and it is not ruled out that both sides will enter the site together to revitalize Taihe Nanjing and Suzhou projects.

Wang Yong revealed to the times weekly that there was Vankes idea in choosing Nanjing and Suzhou, and that the plate where Taihe project is located is relatively mature and relatively easy to start.

At the suggestion of Vanke, on August 25, Taihe Shanghai area was officially cancelled. At present, except for retaining the Guangshen region of Taihe, the rest are reorganized into business divisions. Therefore, there are now two major business units of Taihe Nanjing and Suzhou.

The adjustment of organizational structure paved the way for Vanke to enter the site.

Starting from Nanjing and Suzhou, Wang Yong believed that it has the effect of pulling one hair and moving the whole body.

Taihe Nanjing and Suzhou two business units have a high value of goods. As of June 30, the land area of Taihe in these two cities alone was 44987 square meters, accounting for 15% of the total land area of the company in the Yangtze River Delta.

According to the semi annual report of Taihe in 2020, the projects belonging to Taihe Nanjing business division include Nanjing Yuanyuan, Nanjing luzipu, Taicang yard in Taicang, Jiangsu Province and Jurong Jinzun mansion in Jurong, Jiangsu Province; in Suzhou, there are Gusu courtyard and Suzhou jinzunfu.

In terms of land area, Taicang yard and Jurong Jinzun mansion are 142170 square meters and 104300 square meters respectively, which are large projects of Nanjing business division. As of June 30, the completed area of the two projects was zero.

Vanke is also willing to help promote the resumption of the Taihe project. Zhang Yang disclosed that Vanke has started to provide guarantee for a project of Taihe in East China.

Of course, Vanke also hopes to upgrade its high-end product line through cooperation with Taihe. Zhang Yang said.

Changing ideas

Vankes entry has helped Taihe to some extent. Taihe hopes the cooperation with Shimao will be the same.

Since the crisis broke out in 2018, Taihe has announced to sell some equity of its 10 projects to Shimao. The total consideration of equity and creditors rights is nearly 10 billion yuan.

These include the Yinmeng lake international tourism resort project in Nanchang, Jiangxi Province, mangshuwan project in Zhangzhou, Xiangshan Bay project in Zhangzhou, Qingyun town in Fuzhou, Tongren villa in Linan, Fuyang Yefeng mountain in Hangzhou, Taihe Jiangcun in Hangzhou, Dianshan Lake in Suzhou, Zengcheng in Guangzhou and Foshan yard in Guangdong Province.

Many of these projects are cultural and tourism enterprises with large volume and value.

Different from Vanke, Taihe and Shimao are the cooperation of the project equity level, so they are considered to have the space of replacement and move.

According to Li Xiang (pseudonym), a person familiar with the matter, Taihe is thinking about reorganizing its cooperation with Shimao. Management had a discussion at an internal meeting in mid November.

As with the cooperation between Shimao and Fusheng, there have been cases of grabbing official seals between Taihe and Shimao. Although some projects are operated by Taihe, the process approval is subject to Shimao.

Times weekly reporter looked up the industrial and commercial information and found that, of the 10 announced cooperation projects, the equity delivery of Xiangshan Bay and Dianshan Lake projects in Zhangzhou, Fujian Province and Dianshan Lake in Suzhou, Jiangsu Province, failed to be completed within the agreed time.

In response, Li wants to explain that the reason is that Shimao failed to fulfill some of the pre delivery commitments. And close to Shimao, the relevant people to the times weekly reporter said the responsible party is Taihe.

The current idea of Taihe is to obtain the control right of some cooperative projects with Shimao through replacement. Wang Yonghe, who had previously replaced the equity of Zhongshan taizun courtyard, said that he had taken back the equity of Guangzhou taizun courtyard.

In Shimao, whether Taihe can fulfill his wish needs further research. Wang Yong disclosed that Shimao has fully participated in the daily work even if the equity delivery has not been completed, and relevant personnel of Shimao in the internal OA system need to participate in the approval and signature. Obviously, both sides need time for further running in and negotiation.

Among the two major business departments that will be engaged in the Wanke circle, the project of Dianshan Lake in Suzhou, Jiangsu Province is a cooperation project between Taihe and Shimao. Whether Taihe can wish also depends on Vankes mediation.

Collective landing or shipwreck

The huge debt pressure of Taihe is in front of us. As of October 23, the overdue loan amount of Taihe was 48.71 billion yuan, and the unpaid interest was 6.476 billion yuan.

Taihe needs creditors to restore confidence in it, which involves many financial institutions.

By 2018, the cooperation between Taihe and Great Wall Asset Management will be further deepened to the dimensions of asset management, fund, industrial investment and M & A, banking, financial leasing and trust business. As a result, Great Wall Asset Management has become one of the major creditors of Taihe.

The agreement involving debt extension, interest transfer and other contents is currently being approved and signed by Great Wall Asset headquarters.

If Great Wall Asset can inject capital, it is good for Taihe debt restructuring The above-mentioned creditors of Taihe told time weekly that the debt restructuring methods that Taihe can give are debt to equity swap, debt replacement, discount transfer, structure or securitization.

Taihe also needs the confidence of its employees and owners. At present, some employees of Taihe have not received wages for nearly four months.

Although the National Social Security Fund (NSSF) No.13 purchased 26.59 million shares of Taihe in the third quarter of this year, with a shareholding ratio of 1.07%, Taihe needs further recovery of the capital markets confidence in it.

On July 30, when Vanke announced that it was knight in white, the stock price of Taihe was 5.98 yuan / share. However, as of November 26, the closing price of Taihe was 3.73 yuan / share, lower than the purchase price of 4.9 yuan / share set by Vanke in the original agreement. At the same time, it is close to the average warning line of 3.8-4.1 yuan / share and the closing line of 3.4-3.6 yuan / share.

Moreover, during the period from September 30 to October 23, the shares of 0.9% of the total share capital previously pledged by Taihe to shenwanhongyuan were passively reduced by judicial enforcement.

Wang Yong told the times weekly that under the restriction of reducing its holding by more than 1% for three consecutive months, Taihes equity will not change greatly for the time being, and it is also trying its best to negotiate with creditors to stabilize the equity.

Obviously, the game will continue on the road of debt restructuring.

Editor Luo Yifan