[Epoch Times November 11, 2021](Epoch Times reporter Li Jing comprehensive report) Fantasia Holdings, a Chinese real estate developer, resumed trading on November 10 after the suspension of trading for more than a month, but it plummeted by 50% after the market opened. Fantasia previously announced that several lenders are demanding repayment of outstanding loans.
Fantasia Holdings issued an announcement on the evening of November 9th that as of the date of this announcement, except for the 2021 notes, the company’s notes (including the notes provided by the company as guarantee) and major loans have no outstanding amounts due . The outstanding principal amount of the notes in 2021 is US$205.6 million.
Fantasia stated that the company has not received any notification from holders of any series of notes, requiring immediate repayment. The company has received notices from several lenders requesting repayment of outstanding loans, and the company is discussing the repayment arrangements with relevant lenders.
At 9 o’clock in the morning on November 10, Fantasia Holdings officially resumed trading, and the opening plummeted 50% to HK$0.28. The latest market value was HK$1.6 billion.
The mainland financial media “Gelonghui” reported on the 10th that the share price of Fantasia Holdings fell from 1.8 yuan in early July to the current 0.27 yuan per share, a cumulative drop of 80% in four months. There is currently no hope of a rebound.
According to the company’s semi-annual report, Fantasia Holdings has a debt-to-asset ratio of 72.7% after excluding advance receipts, a net debt ratio of 74.8%, and a cash short-term debt ratio of 1.59. Just stepping on one of the “three red lines” in the supervision of real estate financing, why can’t you not be able to repay the US$206 million loan?
According to reports, Fantasia relies heavily on bond financing, and the short-term debt is serious. As of January 2021, bonds accounted for 67.1% of the company’s interest-bearing liabilities, of which US dollar bonds accounted for more than 50%. In terms of the maturity structure, the proportion of maturity within one year reached 38%, and the degree of short-termization was relatively high. Moreover, in recent years, it has relied on credit bonds to borrow the new and repay the old, but the cost of financing has continued to rise.
On November 6, the Zhejiang-level enterprise Baidu Group issued an announcement stating that the real estate company’s Fantasia project had overdue and had not received its scheduled repayment of principal and interest.
Prior to this, on the evening of October 4, Fantasia announced that the company had defaulted on its US dollar debt, and the total principal of Fantasia Holdings was US$500 million, the remaining outstanding principal of the senior notes due in 2021 was US$205.6 million.
Fantasia and its property company “Color Life” jointly issued an announcement on October 26, announcing the transfer of all the issued share capital of the neighboring Le Holding Group Co., Ltd. (hereinafter referred to as “Ling Le”), a subsidiary of Color Life, to Country Garden Property, and the transfer of funds It is 3.3 billion yuan (RMB, the same below).
The controlling shareholder and director of Fantasia is Zeng Baobao. She is the niece of Zeng Qinghong, a former member of the Politburo Standing Committee of the Communist Party of China, who holds Hong Kong citizenship.
On October 8th, Zeng Baobao sent a “letter from home” to employees saying “I’m sorry”, and at the same time claimed that Fantasia would “never lie flat”, and also urged “give the company time and trust.” Although Zeng Baobao has such an attitude, the media have predicted that if the first share of the property that loses its core assets is lost, the color life service will “darkly end.”
Many mainland media reported on October 9 that nearly 30 billion yuan of funds (approximately US$4.6 billion) in Fantasia may be frozen, and Fantasia is suspected of financial fraud, and the financial crisis far exceeds outside expectations.
Editor in charge: Sun Yun#