A senior China Evergrande Group executive told an internal meeting of the company on Sunday that the construction company aims to deliver 600,000 apartments by 2022, according to media reports and a source close to the company.
The Group must repay its debt by fully restoring its construction and sales activities and not by selling its assets cheaper, the Evergrande president said in an internal meeting, and pledged to complete 50% of the pre-sold homes within the year.
Hui Ka Yan told staff that the company aims to fully resume construction work across China this month, up from 93.2% at the end of last year, with the goal of delivering 600,000 apartments by 2022.
Hui said he currently has about 50 billion yuan ($ 7.9 billion) in pre-sale capital and a total of 170 billion yuan in cash not yet collected from sales, as well as resources for sale to continue construction projects.
“We have to restart the work first and then restore the operation, then pay off various debts in order to ‘get out of the forest,'” Hui said.
In 2021, Evergrande recorded sales of 443 billion yuan, down 39% from the previous year. Hui’s goal for December was to deliver 39,000 apartments, compared to less than 10,000 for each of the previous three months.
It is noted that in recent days the Group began its long-awaited talks with its creditors, in an effort to find a solution to its debt burden, which exceeds 300 billion dollars.
The real estate company, until recently a giant in China’s real estate industry, which is now finding it particularly difficult to meet its obligations to creditors, suppliers and investors, defaulted on its regular dollar bond payments in December, leading to a forced trading climate. what is to be born.
International bonds worth a total of 20 billion issued by the Chinese group are now considered to be in bankruptcy.
Evergrande has asked its bondholders abroad for more time to work on a “comprehensive” debt restructuring plan, after a group of its creditors said they were ready to take “any action required” to defend their rights if the company did not was moving fast in order to settle its debt issue.
Source: Capital
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