Lehman Day Goodwill Property Sale Tianhe Plot

Absrtact: The debt-servicing crisis in Guangzhou, known as the development of luxury and commercial real estate in Canton (HK 00059), has recently been put into effect due to the Yu Bin of 220 million Hong Kong dollar loans owed to Lehman Brothers. According to the June 21 announcement, after continuous consultation with the Lehman liquidator, Tian Yu has confirmed that it will sell 80% of the Tianhe project to China Aoyuan and third party enterprises and repay the debts with the present income. is located in Guangzhou Tianhe north of the days of the international business port.　　IC for illustration a financial crisis makes the capital operation Master Yu Bin quite a headache. The debt-servicing crisis that has been triggered by Yu Bin's debt to HK $220 million has been implemented in Guangzhou, a city known for its development of luxury and commercial property, controlled by the city of Hong Kong (HK 00059).　　According to the June 21 announcement, after continuous consultation with the Lehman liquidator, Tian Yu has confirmed that it will sell 80% of the Tianhe project to China Aoyuan and third party enterprises and repay the debts with the present income. The completion of the deal also allowed for a further extension of the 75 million dollar automatic redemption deadline that could trigger. The immediate respite, but Yu Bin's biggest worry is beginning to surface. At the end of last year, the total liabilities amounted to over HK $2.7 billion, the largest of which was the convertible bonds of $200 million trillion in 2007. The company's 2008 earnings report revealed that the debt would expire in 2013.　　Although Wenxiao, general manager and executive director of Tian Yu Estate, said the company had no new plans for the sale of assets, investment analysts did not rule out the possibility of further selling of assets. The sale of Tianhe plots at a discount is learned that the commercial site of the transfer of Tian Yu is located in Tianhe District days, Hebei Road and the junction of Lin and Dong Lu, 200 meters away, is the most famous landmark in Guangzhou Citic Plaza. Plot area of about 6057 square meters, currently as a fire station land, construction projects have not yet commenced.　　According to the disclosure of the real estate, the project planned construction area of 110,000 square meters, originally intended to start at the end of 2008, to build a 50-storey hotel and apartments. According to people familiar with the news, the days of goodwill home before and after the listing, Yu Bin through a series of financing methods in the capital market, in Guangzhou, Guizhou core Business circle.　　In 2007, after acquiring a 51% stake in the Tianhe Fire station plot project, Tian Yu also signed a 220 million Hong Kong dollar bridge loan to the Lehman Brothers to acquire the remaining shares. In April 2009, due to the bankruptcy of Lehman Brothers, its provisional liquidator continuously demanded that the company repay the loan and refused to extend the borrowing period.　　It is reported that the loan has been postponed, the last due date of January 29 this year. On January 13 this year, Tian Yu property had entered into a non-binding letter of intent to transfer 55% per cent of its shares to the Guizhou project shareholder, in the hope of obtaining cash for repayment. But in the end, Guizhou project partners did not have a piece, this plan also has no below. "People familiar with the matter said that the first days of the acquisition of Tianhe Fire station, the project, before and after the total cost of about 700 million yuan, but now sell its 80% share price only 368 million yuanRenminbi, which shrank nearly 40%. It is reported that, although the smooth shot, but Tian Yu home is responsible for the end of the year before the demolition of the fire station block and the debt clean-up work. After the completion of the park will further acquire the remaining 20% per cent of the total shareholder loans, and the additional payment of not less than 92 million yuan. It is learnt that the proceeds of the scheme, of which HK $8.3 billion will be used to repay the balance of the Lehman loan, 157 million to be paid to the trustee account of HSBC Mortgage, 50 million RMB for the removal cost and the balance to be allocated as operating capital.　　Zhanglianxun, financial director of Tian Yu, said in Hong Kong that the group owed 2 to Lehman $200 million and that the remaining loans would be repaid in the next 1.5. Originally for Fire Department project, Tian Yu home to Lehman Brothers loans, now is to repay this debt, Tian Yu property has to sell at a loss.　　Securities analysts expect the assets to become the real estate reputation of the estimated loss of about 50 million yuan.　　75 million-dollar convertible bond deferred redemption However, such sacrifices also left the goodwill home another debt crisis temporarily eased. In June 2006, the company raised 241 million Hong Kong dollars by issuing new shares and took part in the development and operation of 51% of the head-Tsui project in Guangzhou.　　The drama is that Chau Tau Tsui project has been for the days of home ownership, after the transfer to the city Kai Group, the city Kai Group after the operation of difficulties, the project "found." In 2007, Tian Yu property issued 200 million U.S. dollars convertible bonds, of which USD 92.5 million planned to acquire the remaining stake in the Chau Tau Tsui project. In the planning of the Home Ownership scheme, the Chau Tau Tsui Project will develop six 40 to 60-storey residential properties, another hotel, a serviced residential building and an office building. The residential portion of the project is expected to be delivered by the end of 2009.　　As a result of this project, Lehman Brothers took part in the subscription of some convertible shares and agreed to obtain the land use right of the Chau Tau Tsui project, otherwise it would exercise the automatic redemption rights of the holder of the bill. However, land use rights in the Chau Tau Tsui project have been delayed. "The company has submitted a development plan to the Guangzhou Land Planning Authority for approval, and the project company has also actively followed up with the Land Bureau on the clearance of some buildings which were originally situated on the land." Land tenure permits are expected to be obtained in the next six months.　　"The company said that because of the time taken by the corporation to obtain a land use permit in the head of the state, it was intended to postpone the automatic redemption of $75 million worth of bills, with the consent of the holder of the bill being the date of May 31 or later." That is to say, May 31 was supposed to be the last date for the redemption of the Chau Tau Tsui Project Bill, but Tian Yu property did not obtain the land use right in the original time. This is the fourth time that the Lehman Provisional liquidator has postponed a project note to the continent's head. However, due to the sale of the Tianhe Fire station plot, the Goodwill property will be used to repay the HK $220 million Lehman Brothers, so the automatic redemption of convertible bonds triggered by the Chau Tau Tsui Project may continue to be postponed. Yu BinTemporary respite, but this is only temporary.　　The massive expansion of leveraged finance to the collapse of Lehman Brothers is only the tip of the debt crisis. According to people familiar with the situation, from 2005, the mainland and Hong Kong equities began to flourish, the days of goodwill home for many times the use of offshore capital platform for a rights issue financing acquisition, and large-scale expansion.　　In October 2005, the predecessor of Tian Yu home ownership holdings in the 127 million Hong Kong dollar to buy the Westin Hotel in Guangzhou Project Equity 49%, everyone holding a rights issue to raise about 142 million Hong Kong dollars to complete the transaction. In June 2006, everyone held a further issue of a rights issue of HK $241 million, in July, at a cost of not more than 400 million Hong Kong dollars in the acquisition of the Guangzhou Port Group Chau Tau Tsui Project 51% stake.　　In March 2007, the renamed Tian Yu property issued 200 million U.S. dollar bonds to raise about HK $1.504 billion, of which 92.5 million dollars were used to buy the remaining stake in the Chau Tau Tsui project, 80.7 million USD was used to exercise the remaining equity acquisition of the Westin Hotel in Guangzhou, and 16 million dollars was used as a coupon preparation. The convertible bonds, which expired in 2013, were subscribed to by 6 institutional investors, of whom Lehman subscribed for $50 million and Merrill Lynch International subscribed for $20 million. According to the 2008 report, the annual interest rate of notes, 4% per annum, paid at the end of each year, the annual yield of 15%.　　The bill may be exchanged at the initial exchange rate of HK $1.35 per share for the common stock of the goodwill home, otherwise the bill will be redeemed at 201.33% per dollar by May 3, 2013.　　Securities analysts believe that Tian Yu's current price per share of HK $0.58, lower than the average exchange price per share, the holder of the bill is not currently trying to redeem the common shares. However, as at December 31, 2008, the outstanding convertible bond bills were at HK $1.5 billion. In addition, the outstanding banks and other loans amounted to $1.3 billion, of which HK $280 million would expire within one year. The company has a total liabilities of over HK $2.7 billion. At the same time, Tian Yu real estate core business is still at the bottom.　　Last year, the net profit of 690 million Hong Kong dollar, an increase of 227.7% of the Westin Hotel and the leasing business, the first quarter of this year, a sharp contraction. According to the notice disclosed in the days of the real estate, there are a number of holders of bills to call for early redemption. It is learnt that, in view of the possible transfer of early redemption, the management and the owners of the notes are now discussing a debt restructuring scheme for the early redemption of some or all of the bills, which may involve some of the assets of the realisable group. Securities analysts said, according to the current cash flow judgment, the sale has been built and provide a stable cash flow of the project is not likely, and the Westin Guangzhou, Tian Yu Mansion and the days of Yu Garden two property rights have been mortgaged to two commercial banks. And Guizhou, Chau Head Tsui project follow-up will still invest a huge investment, do not rule out the possibility of selling the cash.　　In this respect, Wenxiao accepted this reporter telephone interview, said, in addition to the announcement published in the news, temporarily there is no information to publish. DaysThe status of the main projects in Guangzhou Tian Yu Hotel and Tian Yu mansion this project has a total construction area of 140,000 square meters, Pearl River basin, the first phase of the project is about 100,000 square meters, the planning of the construction of the top residential projects in Guangzhou City, Hebei Road Project (sold) planning and construction of 100,000 square meters　　Guangzhou core business district, Tian Yu Commercial group building total floor area of 19,000 square meters, including the Days of Fame Garden 2, Days Yu commercial building. Guiyang project planning floor area 480,000 square meters of senior residential apartments