China SCE Group, once known as a leader in the real estate industry, is now mired in a debt whirlpool. The erstwhile giant, faced with a default on the financing agreement, had to accept loan demands imposed by a syndicate of banks and use the shares held by its own subsidiaries as high collateral amounting to 2HK$5.5 billion and US$89.1 million. The previously announced default on US dollar bonds caused an even more severe cross-default, sending outstanding principal and interest soaring to 1,328HK$180,000 and 487US$860,000, in order to get out of the predicament, China SCE Group had to accept the enforcement of the share charge. Chow and Aaron Luke Gardner, as receivers of the Charged Shares, were assigned to manage the stressful situation.
However, this is not the only problem for China SCE Group. The sluggish sales situation has also made the consortium worse. According to the data, as of the end of November, the overall sales fell sharply by 50 year-on-year91% and only 2672.8 billion yuan;Sales area 218970,000 square meters, with an average selling price of 12,207 yuan per square meter. To make matters worse, its subsidiaries failed to repay their debts as they matured on time due to weaker-than-expected sales. This involves huge bank loans, trust loans, and the principal amount is as high as 50.5 billion yuan, interest 02.6 billion yuan;The amount of unpaid commercial acceptance bills amounted to 94.9 billion yuan, a total of 53.1 billion yuan. These cash flow problems further amplified China SCE's financial crisis.
In today's turbulent financial market, China SCE Group, like many real estate companies, has experienced rapid changes from glory to trough. Defaults and enforcement of debts, as well as the breakdown of the capital chain caused by lower-than-expected sales, have pushed the industry giant to the precipice of the precipice. Perhaps, only by seeking a way out of this financial turmoil can China SCE Group break free from the quagmire and regain its former glory.