[Epoch Times November 06, 2021](Epoch Times reporter Zhang Ting comprehensive report) The Wall Street Journal cited sources familiar with the matter on November 5 and revealed that China Evergrande Group raised money by selling two privately-owned aircraft last month. More than 50 million U.S. dollars has brought in urgently needed cash for the company to help it repay its debts.
According to information disclosed by people familiar with the situation and data from Business Aviation, US aircraft investors have purchased two Gulfstream jets from Evergrande. The sale ended in October. In the same month, Evergrande paid interest on two overdue US dollar bonds before the 30-day grace period expired.
According to online records and a person familiar with the matter, Evergrande recently owned at least four aircraft, and one more was on order. Xu Jiayin, the founder and chairman of the real estate developer, splurged on luxury jets during the company’s heyday. Other Chinese enterprise groups, such as HNA Group, also own luxury private jets.
“Hua Ri” stated that the two Gulfstream jets recently sold by Evergrande are the smaller aircraft it owns. According to a related advertisement, the company is currently looking for a buyer for the larger Airbus ACJ330 wide-body jet.
According to people familiar with the matter, Evergrande spent more than $220 million on the plane a few years ago. The aircraft is currently parked at Hong Kong International Airport. It has a customized “VVIP cabin interior”, in addition to shower facilities, entertainment lounge and bedroom, also includes a dining table, the surrounding seats can also be used as sleeping beds. This plane can transport up to 40 passengers and 12 crew members. Commercial airlines often use Airbus A330 jets to carry more than 250 passengers.
Evergrande did not respond to the Wall Street Journal’s request for comment.
People familiar with the matter said that one of the aircraft sold by Evergrande is a 5-year-old G650ER ultra-long-range aircraft that can accommodate 15 passengers. Evergrande sold for less than US$40 million in late October. The buyer was “Earth Air”, a company backed by Los Angeles private aviation investors. The company owns two similar Gulfstream jets.
“Earth Air” president and partner Alex Joya (Alex Joya) confirmed that his company recently purchased the aircraft, but said he could not disclose the details of the transaction.
“Earth Air” has already listed the aircraft it purchased from Evergrande. An online advertisement pointed out that the plane flew for more than 1,400 hours and the asking price was $43.9 million.
A person familiar with the matter told Huari that the other Gulfstream sold by Evergrande is an old jet aircraft that sells for approximately US$15 million. The buyer was “Aviation Sales Associates” of California. A representative of the company declined to comment on the transaction.
Over the years, Evergrande borrowed heavily and actively expanded, causing it to bear more than US$300 billion in debt. Ever since the onset of the Evergrande debt crisis, the company has been trying to sell some parts of its huge empire to raise enough cash to pay back its instigated creditors.
Evergrande failed to pay on time the interest on the debts of USD 83.5 million and USD 47.5 million, which were due on September 23 and September 29, respectively. Evergrande was given a 30-day grace period. If the debt is still not repaid at the end of the grace period, investors can declare Evergrande in default.
In late October, Evergrande raised funds before the grace period expired and paid the interest of the two US dollar debts separately, avoiding costly debt defaults.
Reuters quoted an Evergrande bond holder as saying that although the company can pay interest, it remains negative on the company’s prospects.
“I think they are just buying time.” The person said.
Editor in charge: Lin Yan#
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