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EVERGRANDE: The World’s Most Indebted Property Developer

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You have read about how investors in Evergrande, the world’s most indebted property developer, are “counting on the commies” for help as the company is restructured or potentially liquidated. A long-delayed liquidation hearing was scheduled for Monday, but it was once again delayed. Leaving creditors with little understanding of what they can expect from Evergrande or the Chinese authorities. The Associated Press reports:

A Hong Kong court will convene a hearing Monday on troubled Chinese property developer Evergrande’s plans for restructuring its more than $300 billion in debts and staving off liquidation.

The company, the world’s most indebted property developer, ran into trouble when Chinese regulators cracked down on excessive borrowing in the real estate sector.

Last month, the company said Chinese police were investigating Evergrande’s chairman, Hui Ka Yan, for unspecified suspected crimes in the latest obstacle to the company’s efforts to resolve its financial woes.

The Hong Kong High Court has postponed the hearing over Evergrande’s potential liquidation several times.

Judge Linda Chan said in October that Monday’s hearing would be the last before a decision is handed down.

In September, Evergrande abandoned its initial debt restructuring plan after authorities banned it from issuing new dollar bonds, which was a key part of its plan.

The company first defaulted on its financial obligations in 2021, just over a year after Beijing clamped down on lending to property developers in an effort to cool a property bubble.

Evergrande is one of the biggest developers to have defaulted on its debts.

Action Line: You need to make bonds part of your portfolio, but they should be from places where the rule of law is paramount, and companies are free to do business. When you want help building such a retirement portfolio, I would love to talk with you.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.
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