In the recording, the person in charge of human resources in the southwest region of the company revealed that due to capital supervision, the company’s cash inflows have been “completely cut off” and “the situation is far more serious than what everyone has heard and guessed.” See also Lindt & Sprüngli, the stock market is sweet: one share is worth 100,000 francs Lu Media’s “Financial World” weekly published a recording of an internal meeting held in the Southwest of the Fantasia on October 27. On October 30, Fantasia broke the news of internal layoffs. Since the beginning of the year, Fantasia has plunged 75.6% in the Hong Kong stock market, becoming a “junk stock”, that is, stocks whose stock price has fallen below 1 Hong Kong dollar. Mike Leung, investment manager of Wocom Securities Ltd., said bluntly, “The resignation of the director will make it difficult for Fantasia to resume trading.” In addition, Fantasia and its subsidiaries have been suspended in Hong Kong at the end of September, on the grounds that the company is facing an asset sale transaction. However, people in the industry believe that it will be quite difficult to find new directors at this time in the Fantasia with huge debts. In response, Fantasia Holdings stated that the company is looking for suitable replacement candidates. Any company listed in Hong Kong must have at least three directors.
Two directors suddenly resigned in FantasiaĪs the debt crisis intensified, Fantasia Holdings announced on the evening of October 11 that Ho Man and Priscilla Wong, independent non-executive directors of the company, had resigned.Īccording to the Hong Kong listing rules, after the resignation of these two directors, Fantasia Holdings has no longer met the listing requirements. The report pointed out that since October this year, the amount of contracted sales in Fantasia has fallen sharply, financing has also faced great obstacles, asset disposal has not made substantial progress, and the risk of bond default has increased. See also Visco: "We need a common EU fund to absorb national post-Covid debts" However, Fantasia has not yet promised to pay the principal and interest of the aforementioned bonds. In addition, according to a report released by the credit rating agency “China Chengxin International” on November 23, as of that day, Fantasia had a total of RMB 6.447 billion in outstanding credit bonds, of which a bond of 730 million yuan will mature on November 29, and another A 949 million yuan bond will mature on December 17. The company’s credit rating was simultaneously reduced to negative by Fitch, Moody’s, and Standard & Poor’s three international credit rating agencies, reflecting the extremely high risk of default. In the context of the Xi Jinping authorities’ tightening of real estate financing, in October this year, Fantasia fell into a debt whirlpool, and a debt of US$205 million was due but was unable to repay it. Winding-up refers to a process in which all the company’s assets are sold for cash to pay off debts, and ultimately the company is terminated.įantasia stated that the company will take all necessary measures to resolve the matter, including constructive dialogue with the petitioner.įantasia was founded in 1996 by Zeng Jie (also known as Zeng Baobao), the niece of Zeng Qinghong, the former vice chairman of the Chinese Communist Party and a core member of the Jiang faction, and was listed in Hong Kong in 2009. The company is the guarantor of a $149 million loan facility with outstanding principal. On the evening of November 25, Fantasia Holdings Group issued an announcement that its subsidiary, Hong Kong Fantasia Investment Holdings Group Co., Ltd., was applied for a winding-up petition on the 24th. Its subsidiary Hong Kong Fantasia has been filed for a winding-up petition, which shows that Fantasia’s debt problems are increasing. Fantasia Holdings Group, founded by the core member of Jiang Zemin Group’s niece Zeng Qinghong, is in danger again.
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