Evergrande’s Chairman Hui Ka Yan said in an internal meeting on Sunday that the company needs to repay its debts by restoring construction activities, not by selling-off assets at fire sale prices. He vowed to complete 50% of pre-sold homes with a goal of delivering 600,000 apartments in 2022, as per Reuters sources. Hui added that the company has about ~RMB 50bn ($7.9bn) of pre-sale funds in escrow accounts to pay for construction and RMB 170bn ($26.7bn) of cash yet to be collected.
In related news, Evergrande CEO Xia Haijun sold $128mn in face value worth of Evergrande bonds in the early days of its crisis last year. As per an exchange filing, he sold the bonds at prices of ~36-52 cents on the dollar in late-July and early-August. Evergrande’s dollar bonds are currently trading at ~15 cents on the dollar.
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