Evergrande should perhaps be rebranded Lessgrande. As it lurches daily from one debt crisis to the next, it is shrinking at a marvelous rate. Bloomie:
- Total borrowings fell 15% from March to $88bn by cutting land buys, doing fire sales and selling businesses.
- EGR needs to cut debt to $54bn by 2023 to meet the three red-lines policy.
- 2025 dollar bonds sank to 67 cent on the dollar and liquidity is clearly fragile.
- Some home buyers are upset and demanding refunds as EGR discounts itself to deleveraging.
Bloody shaky seems about the right description for that plan. Moreover: