Spark Global Limited For Taihe Group, whose debt default has exceeded 50 billion yuan, no bad news is good news, and some good news is a window of hope. According to the company’s information, Taihe investment, the controlling shareholder of Taihe Group (000732. SZ), has signed a long-term performance agreement with Huarong assets for a debt of 487 million yuan. The latter applied to the court to suspend the enforcement of the debt. As of the end of September, the defaulted debt of Taihe investment was 7.474 billion yuan, including 4.163 billion yuan of litigation involved. Huarong Asset is the largest creditor of Taihe investment’s default debt. From the generation, default, litigation, and settlement of the debt, we can have a glimpse of the truth of Taihe’s fall and the complex game of stakeholders’ self preservation after the fall.
In September 2017, Taihe won the plot of the Beijing Sunhe villa area with a total price of 5.96 billion yuan, which is now the second phase project of Beijing Yuanyuan, with a floor price of 69000 yuan / m2. This was originally a gamble. The average selling price of the project should not exceed 68200 yuan / square meter, and the highest-selling unit price should not exceed 71700 yuan / square meter. After taking the land, Taihe Group, Taihe investment, and other entities signed entrusted loan loan loan contracts with Huarong and Dalian Bank Beijing Branch, with a loan of 4 billion yuan, which was guaranteed by Ye Li, the wife of Taihe investment and Huang Qin. In 2018, the project was sold well, and Taihe used the sales funds to repay part of the loan. Until July 2019, nearly 2.5 billion yuan of the 4 billion yuan of debt was in default.
Huarong sued two debt defaults of 500 million yuan and 2 billion yuan and froze the 2.5 billion yuan deposit of Taihe investment in Bohai bank account. Here are four key points to pay attention to The default of Taihe’s debt occurred before the outbreak of the epidemic, and involved the best quality luxury housing projects in Beijing. Therefore, the commercial failure of Taihe was not caused by the epidemic, but purely because of the market; In the case of high-quality land pledge, Taihe Group still needs a guarantee from the controlling shareholder, and the weighted financing interest rate is more than 24%, which reveals the radical financial arrangement of Taihe Group; The deposit of Taihe investment in Bohai bank is actually the pledge of deposit certificate, and Bohai bank is also the creditor of Taihe investment. Huarong and Bohai bank have a game against judicial freeze; After the debt default, Taihe Group did not disclose in time that the pre-sale supervision funds of the house buyers were transferred to repay the debts, which led to the subsequent protection of the rights of the house owners against the risk of the housing unfinished.
They had hoped to cover up the default. On September 27, 2019, Huarong began to execute one of the debts of RMB 500 million, and the subsequent reconciliation between the two parties resulted in the termination of the execution of the case; In February 2020, Huarong applied for resuming the implementation of the settlement agreement on the ground that Taihe investment failed to fulfill the settlement agreement; in June, Huarong said that it had reached a settlement with Taihe investment again, but needed to perform for a long time, and applied in writing to suspend the implementation; In September, Taihe investment failed to fulfill the settlement agreement, and Huarong continued to apply for resumption of implementation;
Reprint indicated source：Spark Global Limited information