On Dec.3, The Paper reported that the leading property developer “Fantasia Group” is experiencing liquidity difficulties. They have officially canceled the transaction in the North China region. This seems to be the last gasp for them.
Recently, in his farewell letter on the Internet, Huo Yong, president of the North China region, stated that no party will last forever. The current crisis of Fantasia Group is not a problem of Fantasia alone, but of an entire economy that is influenced by the market environment, policy environment, and many other factors.
On Oct.4, Fantasia Group founder and real estate group CEO Zeng Baobao posted on Weibo a poster of the movie “Darkest Hour” without any captions.
That same night, “Fantasia” announced that the company was unable to pay the remaining principal of its 2021 bills of approximately $205 million on Oct.4 as scheduled.
Fantasia’s ranking position, according to Fitch rating, had dropped from “B” to “CCC-” in the previous few hours. At the same time, Fitch warned that Fantasia’s financial situation was unstable. Fitch estimates that from now until the end of next year, Fantasia will have to repay nearly $2 billion in international bonds and almost $1 billion in domestic bonds.
There is a Domino effect in the Chinese real estate industry. Private real estate companies are constantly experiencing problems, leading to crises and instability.
The new organizational structure and personnel adjustments that Fantasia introduced this time are also the final solutions to save the situation and help people prepare mentally and strive to survive in crisis and adversity. It is hoped everyone will understand the critical situation and cooperate.
After announcing the default of US dollar bonds, on Oct.4 of this year, Fantasia began to rescue itself by selling equity in the company, adjusting capital in cooperation projects, and extending bonds, aboluowang reported.
Recently, Fantasia also transferred two projects in Beijing, Guoxiang Mansion and Guoxiang Yunzhu Group, to Xuhui Group. Before that, Fantasia moved the Ningbo Mingcui Dongzhu project to Jian’an Investment Holdings Group Co, Ltd.
On the evening of November 25th, Fantasia Holdings announced that on Nov.24, the company’s principal subsidiary, Hong Kong Fantasia Investment Holdings Group Co., Ltd, had a principal outstanding balance of $149 million.