That's right, pizza. The labor exodus from Shanghai is reminiscent of the elite departures from Hong Kong over the past year, although the more recent emigration is still at its early days with no clear patterns yet. April 2022 also saw the largest year-over-year declines since January 2021 in the median numbers of contracted sales, contracted sales areas and implied average selling price from 34 developers that had reported April operating stats, according to Reorgs May 19 analysis. Opening remarks from the FT Chair View from the Top: How resilient is private debt as the credit cycle turns? 
No sooner was the newest elevated inner city highway erected than it was congested with cars bumper to bumper during rush hours. (Yes, I know, Im recycling my trend story. Here is Part I of the interview (part II coming on Sunday). pile Demand from investors for new assets is high and the industry is seizing the opportunity to drive growth. We accommodate group subscriptions. agf awards magazine congratulate winners celebration third annual making would africa Demand from global investors and local borrowers is pushing private debt to new heights across Asia. If you havent already, need to subscribe to. , a great new newsletter for people interested in distressed to lien on for an Ultra fun read every Sunday night. Fortune highlighted us in The Ultimate Guide to the Best Business Newsletters. Buzzfeed discussed us here. 
It will be some time for the Bund to be crowded again. come for the A++ corporate restructuring headlines, stay for The Wire quotes. LOVE the coverage on @onepeloton in today's @petition mid-week. Ltd., declarations accompanying the chapter 15 filing show.
But foreign representatives for TAC on the same day sought emergency relief in connection with the chapter 15, pointing to a lack of cooperation from TACs founders and warning that absent provisional relief there is an actual and imminent risk that the Debtors assets may be transferred or otherwise disposed of by parties other than the court appointed Foreign Representatives to the detriment of the Debtor, its creditors, and all other interested parties.. hipc zimbabwe myanmar debt distressed alternatives countries nigeria lessons african papers policy pp73 Is it time to step up the regulation of private credit? 
NSO Group; You will be contacted by e-mail towards the end of the trial to ask if you wish to subscribe. Its easy to argue that little visible progress has been made in offshore restructuring of Chinese real estate bonds in the first half of 2022, but regulatory loosening has been overshadowed by Covid lockdowns and the countrys economic slowdown. pic.twitter.com/w28vtgErD1. Our intelligence, reporting and analysis also includes information on distressed trading and investing written specifically for investment managers, investment bankers, legal professionals and corporate professionals. The rough idea of this op-ed was to try to establish if anything had changed, and whether on that basis I could ignore what I had learned in 2021 and try to make predictions. A widely circulated documentary, produced by the state-owned Shanghai Daily newspaper, shows people who walked for hours or rode bicycles to train stations as taxis or car rides are either unavailable or exorbitantly expensive. Its like Stratechery meets the skimm for people who care more about covenants than the cloud and Kardashians. Their writers are a Breit bunch with a burning passion for the space, who Sea trends and Drill down on Hot Topics, it's the Tops. While still below the $29.3 billion recorded in 2019, the figure is not far off pre-pandemic volumes of 2017 and 2018, when deal values of $27.6 billion and $20 billion, respectively, were recorded, as Preqin noted. In April, the unemployment rate reached 6.1% for the national average, and 6.7% for the 31 largest cities. Upon arrival, she was shepherded into a student dormitory-turned hotel for a seven-day quarantine, with food and lodging paid for by the local government. The two are not and should not be mutually exclusive., On November 11 and then, in a more fulsome manner in November 18s Biopharma is in Pain, we noted that Synergy Pharmaceuticals Inc. ($SGYP) appears to be on the brink of bankruptcy. Looks like we were right on. While the PBOCs May rate cut signaled that a freefall in Chinas economy would not be tolerated, and acknowledged the critical role that real estate plays in the economy, developers still struggle with reduced contracted sales and a lack of access to funding. Chinas economic slowdown and regulatory drives mean only $2.1 billion has been raised through IPOs and secondary listings in Hong Kong, down from $20.7 billion over the same period the previous year, the slowest start to a year since 2013,Reutersreported in May. PETITION is a digital media company focused on disruption from the vantage point of the disrupted. Reorg has not been able to secure pricing information for the other two companies. The lockdown has had an immediate and tangible effect on Chinese real estate companies, which constitute some of the most active credits in our coverage universe. Private credit is booming with estimates suggesting the market is now worth more than US$1 trillion. Our Members/readers a highly targeted group of investors, lawyers, investment bankers, consultants, C-suiters, board-of-director-types, and others trying to keep up with rapid change and the disruption that comes with it use our unique news and insights to source investment ideas, identify and pitch new deals, develop business, advise clients, and more. Each morning the Prospect News Distressed Debt Daily will be waiting in your inbox when you arrive at work. You guys are killing it. As a #spintrovert since Sept '17, I relate to every part of it. What are investors current and medium term expectations of returns in this market? Talen Energys chapter 11 proceedings continued, with Talen Montana filing an adversary proceeding to avoid the transfer of certain asset sale proceeds to former parent PPL Corp. and Talen Energy obtaining the support of 71% of unsecured noteholders for its RSA. What is clear though is that some things have changed, but the focus on Chinas Dynamic Zero Covid strategy and its widespread lockdowns has largely overshadowed a loosening of regulatory policy towards the countrys real estate sector.
Membership gets you: access to community features including comments and ask us anything sessions; and. For any suggestions please email us at questions@reorg.com. Our primary product is an a$$-kicking email briefing sent to Members every Sunday. As Shanghai is reopening after a months-long Covid-19 lockdown, the Chinese government is eyeing economic recovery and picking winners and losers in the property sector by hosting a virtual road show for five privately held developers to pitch new bond offerings. Look up individual cases, search by case terms or see recent filings. Specifically, the July 9 motion discloses that the whereabouts of TACs founders, Zhu Su and Kyle Livingstone Davies, are currently unknown and they have not yet begun to cooperate with the Foreign Representatives in any meaningful manner.. But while that regulatory loosening is positive for the sector, the impact of mass lockdowns on Chinas economy is very clear, and clearly negative for the sector. Extremely fun and very informative, For more content about restructuring, bankruptcy, distressed investing and more, check it: exchanges debt climb crisis 2021 was a bumper year for private credit, with the market size growing to almost US$1 trillion. A further truth is that Asia remains under-penetrated for private credit and direct lending strategies compared with North American and European markets, as panelists noted at the recent FTLive/Reorg conference on private credit held on May 4 and 5. Yet, despite ample capital, caution remains a watchword as the global credit cycle turns and the pandemic continues to influence the prospects for business and finance. You guys are killing it. Which loan structures and strategies, from direct lending to investing via funds, are proving most effective in the current market? Every Wednesday for free , Perhaps the best tidbit to come from the Evergrande fiasco courtesty of the always-briliant. (Whether this three-year period directly correlates to the short-term memory of financial markets, I have yet to discover.). content including our more robust a$$-kicking Members-only Sunday briefing you must become a Member. The "Weil Bankruptcy Blog Index," CMBS and how Nine West is the Gift that Keeps on Giving https://t.co/ASXHl6tFds, If you're at all interested in restructuring / distressed investing, petition is a great newsletter. The collapse in valuations inevitably generated a barrage of memes, about fry cooks who became Blockchain Investors/Web 3.0 Experts but are now fry cooks again, or buying the dip when the dip keeps dipping. The New Yorker acknowledged our popularity here. As in the Americas, companies in Europe are continuing to feel the strain from supply-chain disruptions and inflationary costs. If you are a restructuring professional who isn't following @petition and getting their newsletter yet, you should fix that. During the summit, we will discuss debt restructuring, leveraged finance, financial restructuring and many other topics.
According to minutes of a May 25 teleconference held by the central government officials with those at the provincial and local levels, in April, industrial production value-add was down 2.9% year over year, compared with a 53% year-over-year increase in March.
SPAC performance; As an added pressure, the primary markets are all but shut, leaving companies with upcoming maturities between a rock and a hard place and banks on the hook for underwritten deals. LP Fireside Chat Harnessing the illiquidity premium of private markets.
Fireside Chat: Has private debt come of age in Asia? After reading us, youre friends, colleagues and clients will be like: We generally send two newsletters a week one on Sunday and another on Wednesday. We accommodate group subscriptions. It is a story about technological disruption, leverage, capital markets, Carl Icahn & pizza. The potential for this market is enormous, but there are risks. Any opinions or other views expressed in this column are the authors own and do not necessarily reflect the opinion or views of Reorg or its owners. Authorities have imposed full or partial lockdowns on dozens of Chinese cities, including the financial capital Shanghai, wherea further full lockdown was put in place over the past weekend. As the markets in the US and Europe reach maturity, Asia is seen as a new avenue with massive potential for further growth. Private credit is booming with estimates suggesting the market is now worth more than US$1 trillion. 99 Cents Only and more In-Person & Digital l Glaziers Hall, London and Harvard Club, New York | #FTAltCredit. Reorg experts recently conducted an analysis of chapter 11 filings. For questions or comments, contact Stephen at saldred@reorg.com and Shasha at sdai@reorg.com. In China, some real estate companies face a more favorable policy environment as underwriters are providing credit enhancement measures for new bond issues by developers under the directives from regulators to support healthier issuers return to the capital market. Subscribe. distressed Weekly, The Ultimate Guide to the Best Business Newsletters.. Surely the first sign the company was bad at Important Decisions was that they were guarantor for something called Jumbo Forture Enterprises? involving debt Every trading day, the newsletter brings you: All publications are available via e-mail (recommended) or print delivered by mail. I get excited everytime I see an email from you guys in my inbox- love the content. AndTurnarounds & Workouts listed us among theTop Internet Bankruptcy Resources two years running. Flights out of Shanghai have also been canceled. debt climb exchanges crisis west distressed coronavirus 8th june Private credit dry powder in Asia was estimated at $16.2 billion in 2019, up from $6.1 billion in 2009. Highlights of our extensive coverage and analysis of the largest stressed and distressed debt, loans, funds, companies and the distressed debt market across the Americas, EMEA and Asia. To what extent will Asia follow a similar growth path? That protection empowers investors, allowing them some control over their fate. doubles debt freedoms ipfs Stat. https://t.co/IGa65NyXOx, good read -'That is to say, the parties involved thought that the business was worth more -and therefore covered - the $675mm of sr secured notes. propmodo Learn more: The same regulatory crackdowns that have driven high-yield bond pricing on many real estate developers into the teens and the 20s the Three Red Lines policy and the reining in of the shadow banking sector not least among them have created an environment where capital providers or solutions providers can negotiate not just higher returns, but more importantly more downside protection through lower LTV ratios, greater collateral, additional guarantees and controls over cash flows and sources of repayment.
To receive regular content including our more robust a$$-kicking Members-only Sunday briefing you must become a Member. billions debt breakneck shaky PETITIONmakes its thousands of Members smarter about disruptive trends and distressed debt. ThePBOCs announcementnoted, though, that the minimum mortgage rate for second home buyers was unchanged, with the countrys central bank reiterating that housing is for living in, not speculation.. Australias private capital industry overall grew to $89.9 billion AUM, up 11% from $81.3 billion in December 2020 and 42% higher than $63.5 billion in December 2019, Preqin also reported. bankruptcy creditors lenders Everything we have ever published is here, indexed by company name. Evergrande has over $300 billion in liabilities and accounts for 16% of Chinas high-yield bond market. This is amazing they do stories like this. We also have special rates for students with .edu email addresses. French chilled dough and pancake maker Cerelia is seeking an amendment to be able to raise an 80 million loan amid rocketing input costs. debt downturn How cautious should investors be about entering this market, given the ongoing macroeconomic uncertainty? Again, it comes back to the economy and whether we will see greater government stimulus in a bid to boost home buyer confidence in the second half. Special categories for tenders and market commentary. These of course are pre-Covid-19 numbers. The TAC and Voyager cases will be closely watched for guidance on the process of restructuring and discovery within an asset class which, lets be honest, gained its initial popularity among global crime syndicates because of its ability to completely avoid regulatory oversight. Mallinckrodt second lien notes are indicated with a 12% yield and Buckingham Senior Livings 2021B notes are indicated 42.3/43. Join below today. and getting their newsletter yet, you should fix that. Reoffer prices are well below par on many new issues. Revolution, yeah. As the environment becomes favourable again for distressed investors how is the market cycle developing and how big is the distressed opportunity likely to be? Long characterised by large-scale, stable returns, downside protection, and measurable risk, real estate has been considered one of the key opportunities for private debt investors focused on Asia. Asia is of course a diverse set of countries, cultures, currencies and legal and financial jurisdictions, offering a wide array of opportunities and drivers for a credit driven strategy, both for performing and stress-related strategies. #FOMO, @Petition is a smart and hilarious newsletter that you should totally sign up for https://t.co/rTU261acwz, This!!! Hear from market leading experts ondistressed restructuring,bankruptcy analysis, and the leveraged loan market in 2022 and beyond. But they do not constitute a viable financial market, and sources of capital available to most developers are limited in the extreme. This weeks newsletter is new high for quality content about capital markets. As demand for direct lending, distressed debt, structured credit and leverage finance increases, where will new avenues for growth emerge? Subsequent to that roadshow, Seazen alsopriced $100 million7.95% 364-day senior notes due June 2023 at par, in a rare instance of a Chinese real estate developer accessing offshore high-yield markets this year. Facetious title (which made me laugh) aside, some really thoughtful points on many of the practices that have developed in bankruptcy, Independent Directors, Forum Shopping & Third-Party Releases. Also this week, GenapSys, which has developed a novel method for DNA sequencing, filed to run a sale process after it stopped selling its DNA benchtop sequencer and offered refunds because of inherent design flaws., Celsius Network, a cryptocurrency finance platform and lender that claims over 1.7 million users worldwide, filed chapter 11 to stabilize its business and consummate a comprehensive restructuring transaction. Without an RSA in hand, the company intends to fund postpetition operations using cash on hand, which will provide ample liquidity to support certain operations during the restructuring process. The company explained in a press release that it paused customer account withdrawals on June 12 because without a pause, the acceleration of withdrawals would have allowed certain customers those who were first to act to be paid in full while leaving others behind to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities before they receive a recovery.. On June 9, we will host a webinar discussing Shanghais reopening and implications for the real estate sector. Their writing is the kind of IP I'd move to an unrestricted sub in a hot minute! S&P noted in a May report that offshore defaults for Chinese bonds in 2021 broke the prior 2020 record by 4.2 times in terms of amount, with a 3.3% default rate driven by unprecedented failures of property firms. The suspicion is that chasing down crypto assets might ultimately lead to an encrypted USB stick in North Korea.
Email us for details: petition@petition11.com. Disruptions to industrial manufacturing may cause demises of small businesses that are vital to the supply chain. Robert Smith, Capital Markets Correspondent, Financial Times. Ultimate outcomescannot be predictedwith precision. Policies: Curation, Terms of Use, Privacy Policy & Disclaimer. In addition, the debtors face other unanticipated losses, including a private lenders inability to return the companys collateral when Celsius attempted to repay a loan in July 2021. How concerned should investors be about warnings around systemic risks, market opacity, standards and illiquidity issues? Impediments to audit was just one direct impact on developers. PETITIONprovides analysis, commentary and curated links about restructuring and bankruptcy. Having moved from the margins to the mainstream, this previously niche asset class is proving a real disruptor in debt capital markets, as investors seek out steady and healthy returns, and borrowers opt for new non-bank sources of finance. Thanks for the hard work. Developers dont typically disclose reasons for changes in monthly contracted sales, but one can surmise that foot traffic to showrooms has diminished. A poll of small and medium-sized companies in Shanghai conducted this month showed that of 941 respondents, 61% said they could not survive beyond six months. The recent pace of growth in the alternative credit market has taken everyone by surprise, not least regulators and market watchers, some of whom are raising concerns about the potential for systemic risks. Having moved from the margins to the mainstream, this previously niche asset class is proving a real disruptor in debt capital markets, as investors seek out steady and healthy returns, and borrowers opt for new non-bank sources of finance. Our Members/readers a highly targeted group of investors, lawyers, investment bankers, consultants, C-suiters, board-of-director-types, and others trying to keep up with rapid change and the disruption that comes with it use our unique news and insights to source investment ideas, identify and pitch new deals, develop business, advise clients, and more. Really enjoying @petition - great product! Voyager itself filed a chapter 11 petition late in the day on July 5, seeking relief to address a short-term run on the bank due to the downturn in the cryptocurrency industry generally and the default of a significant loan made to a third party.. debt If you are a restructuring professional who isn't following. New Issue Concessions (NICs) have risen from the previous 0-5 basis points to as high as 20 basis points. This weeks chapter 11 cases included a filing from asphalt construction company Premier Paving Ltd., extending 2022s spike in industrials sector filings, stemming primarily from the construction subsector. Questions or problems? What impact does the prospect of rising interest rates and higher inflation have on the outlook for borrowers of private credit and generally credit quality? yuan thomas The impact reaches far beyond Shanghai. Compared with tens of thousands who are trying to leave Shanghai, she is among the lucky ones. a further full lockdown was put in place over the past weekend. is a smart and hilarious newsletter that you should totally sign up for, Subscriptions . The wave of cryptocurrency cases also continued this week, with a filing from Celsius Network, following filings earlier in July of the chapter 11 case of Voyager Digital and the chapter 15 of defunct cryptocurrency hedge fund Three Arrows Capital. Taking direct lending as an example, over the roughly 10 years since I first wrote about the growth of the strategy in Asia, the topic has been regularly recycled. More significantly, five real estate developers Longfor Group,Country Garden Holdings,CIFI Holdings,Seazen Groupand privately ownedMidea Real Estate Holding are now widely viewed by the market as golden or chosen, after aMay 27 virtual roadshowhosted by the Shanghai Stock Exchange revealed they had been uniquely selected to issue new onshore bonds supported by credit protection instruments from underwriters, including credit default swaps and credit risk mitigation warrants. is simply fabulous - really without exception. But have recent events in Chinas real estate market altered that picture? So, to exploit a couple of sports commentator platitudes in order to make a prediction, the game is finely balanced and could go either way. Send Feedback to petition@petition11.com. marketscreener Back then, the modern metropolis was full of youthful pride and ambition to eventually rival Hong Kong to be the next financial hub in Asia. Property developers including Shimao, Logan, Jingrui, Agile and a Powerlong subsidiary have delayed release of 2021 audited financial statements citing pandemic control measures in the mainland since March. Reorgs editorial leadership has selected the following list of the most compelling and topical situations and distressed activity across our global coverage universe. To request trial access to Reorg for you and your team,click here. My new #1 indicator of restructuring activity: The Weil Bankruptcy Blog Index. In Indonesia, a puzzling bondholder identification announcement for palm oil producer Sawit Sumbermas Sarana has market participants chattering, and an unusual judgment shows unpaid creditors can access recourse despite prior appointment of insolvency officer-holders in a companys place of incorporation if the company can prove sufficient connection with Hong Kong. But can this be sustained as the credit cycle turns? One of the best substacks out there for credit & rx folks. Look up new deal information and issuer news. To what extent will current low interest rates affect returns? Ownership . While OptiGroup and Europcar both pulled new transactions citing market conditions, European direct lenders have been taking advantage of closure of other markets to pick up deals including Morrisons debt at a discount from the underwriters books. What are the most effective investment opportunities in this market, from direct lending to mezzanine and distressed debt? Alright #bankruptcy geeks, I ponied up to buy my @petition subscription and you should too - this is the deepest and most insightful (and funniest) coverage of complex workouts and bankruptcies out there today.
