The phenomenon that the assets and related shares of real estate companies are frozen one after another.
On March 25th, following the freezing of Wanda Commercial Management’s 16.2 billion yuan equity, the news of freezing came from Country Garden, a real estate head company.
According to the legal litigation information of Tianyancha, Country Garden Real Estate Group Co., Ltd. recently added several pieces of information about stock right freezing. The enterprises whose shares were executed include Shenzhen paladin Phase V Equity Investment Partnership (Limited Partnership) and Shenzhen Huixin No.22 Investment Consulting Partnership (Limited Partnership), etc. The amount of frozen shares ranged from 39 million yuan to 6.705 billion yuan, and the total frozen shares exceeded 10 billion yuan. In addition, the company also has information such as the executor and the consumption restriction order.
As for the freezing of the above-mentioned shares, China, a brokerage firm, interviewed Country Garden. As of the press release of China, a brokerage firm, the company has not responded.
Country Garden was petitioned for liquidation by creditors at the end of February, but Country Garden strongly opposed it. On March 4, it further disclosed that the company would consider whether to apply to the Hong Kong High Court for an authorization order in the light of the progress of its overseas restructuring at a later stage.
As far as Country Garden is concerned, according to China, a brokerage firm, the company is making every effort to ensure delivery and stable operation. As of March 15th, 272 projects under Country Garden have been included in the "white list" and distributed all over the country, and the amount of financing support has reached 1.732 billion yuan.
More than 10 billion shares were frozen.
Country Garden has new troubles.
On March 25th, Tianyancha information showed that recently, Country Garden Real Estate Group Co., Ltd. added several pieces of information about stock right freezing. The enterprises whose shares were executed included Guangzhou Yuedong Country Garden Investment Co., Ltd., Shenzhen paladin Phase V Equity Investment Partnership (Limited Partnership), Shenzhen Huixin No.22 Investment Consulting Partnership (Limited Partnership), Shenzhen Biji Industrial Development Co., Ltd., etc. The amount of frozen shares ranged from 39 million yuan to 6.705 billion yuan, and the total stock right was frozen.
According to the latest freezing case dated March 21st, the executor is Country Garden Real Estate Group Co., Ltd., which belongs to the defendant in the first instance of civil affairs. For example, the company whose equity is executed is Guangzhou Yuedong Country Garden Investment Co., Ltd., and the amount of equity executed by the company is 100 million yuan. The freezing period is from March 21st, 2024 to March 20th, 2026, and the enforcement court is the People’s Court of Linyi Economic and Technological Development Zone, Shandong Province.
According to the data, Country Garden Real Estate Group Co., Ltd. was established in April 2015, and its legal representative is Jian Wentang, with a registered capital of about 15.3 billion yuan. It is jointly held by Foshan Shunde Zhouhua Investment Consulting Co., Ltd. and Shenzhen Bigui Technology Development Co., Ltd. Risk information shows that the shares of several companies held by the company have been frozen before. In addition, the company also has information such as the executor and the consumption restriction order.
Stable operation and guaranteed delivery
The freezing of its shareholding is a microcosm of Country Garden’s debt crisis.
At present, Country Garden, on the one hand, can "make blood" by stabilizing its operation, on the other hand, it needs to actively fulfill its social responsibilities and complete the task of ensuring delivery.
On February 28th this year, Country Garden announced that it had received a petition for liquidation. Ever Credit Limited (a wholly-owned subsidiary of Jiantao Group) filed a liquidation petition with the Hong Kong High Court the day before for its unpaid term loan with a principal of about HK$ 1.6 billion and accrued interest with Country Garden. The Hong Kong High Court has set May 17, 2024 as the date for the first hearing of the petition.
"Our company will strongly oppose the petition." Country Garden said that the presentation of the petition does not mean that the petitioner can successfully liquidate the company.
On March 4th, Country Garden disclosed that it issued a further announcement on the liquidation petition, saying that the company would consider whether to apply to the Hong Kong High Court for an authorization order at a later stage in combination with the progress of its overseas reorganization.
In October, 2023, Country Garden announced that it would seek an overall solution to comprehensively solve the overseas debt risk of Country Garden Holdings. Country Garden Holdings will actively promote overseas debt management measures and formulate an overall solution fairly and justly on the premise of respecting the existing legal status and legal repayment order of all creditors to achieve a long-term and sustainable capital structure.
In January this year, Country Garden said that it had appointed KPMG Enterprise Consulting (China) Co., Ltd. as the main financial consultant for overseas debt restructuring.
At the beginning of March this year, Country Garden held a monthly management meeting and revealed that the company’s current priority is to ensure cash flow. According to the information disclosed at the meeting, Country Garden is actively taking measures to increase revenue and reduce expenditure, trying to reduce cash flow expenditure by reducing non-operating expenses, and actively increasing cash inflow through sales to ensure sufficient funds to support delivery and daily operations.
According to the recent disclosure of relevant persons in Country Garden, Country Garden has taken measures such as salary reduction for senior executives and middle-level cadres to save expenses, and hopes to do a good job in ensuring delivery.
Country Garden also said that ensuring delivery has always been the bottom line that Country Garden must firmly hold. According to the data, Country Garden delivered over 600,000 houses in 2023. According to the plan, Country Garden is expected to deliver more than 480,000 sets in 2024.
Yang Huiyan, Chairman of the Board of Directors of Country Garden Group, said that at present, Country Garden’s own resources can guarantee the delivery of houses this year. She also pointed out that although resources are sufficient, the problem lies in the mismatch of time and space. Therefore, we should cherish the use of resources and wait for the opportunity for the market to pick up.