HNA Concludes Overhaul, Advisers in Demand: Evergrande Update




  • In Business
  • 2022-04-25 00:30:31Z
  • By Bloomberg

(Bloomberg) -- HNA Group Co., the Chinese conglomerate that collapsed with billions of dollars of debt, has completed its restructuring after a joint working group was set up more than two years ago to handle the task.

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An unprecedented wave of defaults in China means booming business for some companies hired to clean up the fallout, with restructuring and financial advisers expanding their Asia teams faster than ever to keep pace with demand.

After another rough week for Chinese markets, focus is on what policy makers may do next. Optimism generated by Beijing's support pledges last month has continued to falter. A Bloomberg Intelligence index of developer shares suffered a second consecutive week of declines, despite rising 0.4% Friday.

Key Developments:

  • China's Restructuring Firms Staff Up for Record Wave of Defaults

  • HNA Group Says Restructuring Completed After Two Years of Work

  • China CSRC Vows to Ensure Stable Operation of Capital Market

  • China's Plunging Markets Trigger Capital Flight

China's Restructuring Firms Staff Up for Record Wave of Defaults (7:58 a.m. HK)

Restructuring and financial advisers ranging from Alvarez & Marsal Inc. to boutique firms such as Admiralty Harbour Capital Ltd. have been expanding their Asia teams. They are now vying for growing opportunities as some of the biggest names in Chinese real estate including China Evergrande Group and Kaisa Group Holdings Ltd. undergo a historic revamp after failing to pay creditors.

The arrival of these experts is a pivotal moment, as well as a sign of maturity, for China's relatively young credit market. As authorities push for a durable fix to reduce financial risks without triggering a systemic collapse, troubled companies long used to being rescued by the state are realizing Beijing will no longer stop them from going bust. The message is clear: Defaults are crucial to curb moral hazard and reprice risk despite the short-term pain.

HNA Group Says Restructuring Completed After Two Years of Work (7:50 a.m. HK)

All four restructuring plans related to HNA Group have been completed with court approvals, the conglomerate said on its official Wechat account, adding that the "risk-disposal work" is basically finished.

HNA was effectively seized in February 2020 by the provincial government of Hainan, the southern island province where HNA is based, after piling up one of China's biggest corporate leverage loads. The company in October reached agreement with creditors on a debt-restructuring plan.

Times China Arranges Funds to Repay Notes Due April 26 (5:31 p.m. HK)

Times China has arranged the remittance for the repayment of all outstanding principal amount and accrued interest of the 5.75% notes due April 26, according to a filing to HKEX.

Meanwhile, three holders of a Times China onshore unit's 467 million yuan ($72 million) ABS tranche due Friday told Bloomberg News they've received principal and interest. A Times China's IR representative didn't immediately respond to a request for comment.

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