After the Fantasia Group fell into a liquidity crisis, Pan Jun, Chairman of the Board of Fantasia Holdings (01777.HK), discussed for the first time the status quo of Fantasia and some progress since its debt default.
On December 6th, in the article “Pan Jun on Fantasia: Putting the Dead to Live” published on the official WeChat account of the Fantasia Group, Pan The army divided Fantasia’s debt into 4 areas.
The first one is overseas debt. “The cause of our thunderstorm is overseas debt, which is also relatively large, more than 4 billion US dollars, close to 26 billion yuan. For this part, we immediately appointed a consulting agency, financial adviser Valian and legal adviser Sidley, and we acted Very quickly, within two months, we have identified 95% of creditors, and we are actively communicating with the consultants of our overseas creditor group. We have also conducted business analysis and forecasts on the company’s stock and operating projects, and consulted with the company’s consultants. Discussed and launched the first version of the overseas debt restructuring framework. This is the first goal we expected to achieve. “
In terms of domestic credit debt, Pan Jun said The debt scale of this part of Fantasia Group is 6 billion yuan. “We have learned the lesson of overseas debt. We did not lie flat, but actively communicated with these creditors and regulators every day. We finally got the extension and got everyone’s understanding. So you have seen it recently, although The conditions are a little worse than originally expected, but we have exhausted various methods, such as paying part of the interest due and obtaining the understanding of the creditors. As of December 3, 2021, two domestic bonds have been extended, and there has been no domestic open market default. In the event, we are also conducting continuous and orderly communication on other debt renewal plans.”
Domestic bank financial institution loans are mainly development loans. Pan Jun said that this part is relatively normal at present, and there has not been a large-scale repayment, and it has been understood by major creditors. This part is worth more than 20 billion yuan.
“Maybe the most difficult part now is non-financial institutions.” Pan Jun said, “This part of financing was the first to break out. Small and medium guarantee groups, etc., have recently There will be some assets like Ping An Real Estate, all of which are value financing provided by non-financial institutions. We have been communicating in the past two months. Now that the outbreak has broken out, we are still actively communicating solutions, such as the first order of a small and medium guarantee group. Those sealed up, now we have also reached a settlement plan to resolve the crisis.”
On October 4, Fantasia Holdings announced a sum of US$205.6 million for the company.The debt defaulted, and thereafter publicly admitted that the company had liquidity problems.
Since the company’s capital and liquidity problems appeared, Pan Jun said, “In the past two months, including the November period, Ms. Zeng and I (the founder of Fantasia Holdings) People and executive director Zeng Baobao) has not taken a day off, and is working overtime every day, discussing and coping with possible crises, and actively connecting with all relevant institutions, such as the various district committee offices of the Shenzhen government, major financial institutions, and our core Suppliers. During this period, I also traveled to various governments during some time, including Chengdu, where we delivered a large amount. In the face of this crisis, our strategy is to’guarantee delivery, protect people’s livelihood, and ensure stability’.”
In addition, Pan Jun said that the company is also actively realizing some of the projects operated by the minority shareholders of Fantasia in order to find a certain amount of incremental funds to solve the project delivery we are facing. Cost pressure, and some internal operating expenses to guarantee the bottom. “Because I am responsible for the part of the realization of assets to seek incremental funds to ensure the payment of employee salaries.”
As for how long it will take for Fantasia to survive the crisis, Pan Jun said frankly , It takes 2-3 years or more.
” Everyone can’t understand that we may be able to overcome this difficulty in a short period of time. To make a mid- to long-term preparation, we may need to spend a very long time to resolve us This crisis may last for 2-3 years or even longer. When we made the plan, we did not expect to face such a complicated environment.” Pan Jun said, “We have reached the worst time, and we are now extremely lacking. Oxygen, extremely lack of cash flow, all have to sell assets in exchange for the most fundamental protection.”
Recently, Fantasia successively transferred the company’s locations in Foshan, Ningbo and Beijing, etc. Projects in many places, thus returning funds.
While reflecting on why the company encountered the current situation, Pan Jun said, “Our risk system is insufficient. In the downward trend of the entire industry, we have encountered The risk of cash flow must have something to do with our management, so we need to reflect on it in particular. Our specialty should be to control risks and be able to act in accordance with changes in the trends of customers, products, and services for a long time.” Pan Jun said, “I believe that the problem we encountered this time is very important. It is that we have problems with the risk management and control of the organizational system, and there is a problem with the collaborative management of the organization. We will hear from our customers, financial The organization said that when things happen, they often don’t know which department to look for. Everyone is pushing. This may be the core of our problem, which is the failure to identify risks. For example, we todayIn the first half of the year, we should not buy land anymore when we encountered such great pressure in the first half of the year. As a result, we also spent 8 billion yuan. “
Pan Jun said, “After these two months, Ms. Zeng and I have spent a lot of time reflecting on it. First, bravely face the mistakes we made, change some of the inertia of our work in the past, and conduct organizational control in a more refined manner. Second, we must do everything possible to repay the debts we owe, and we must restore the bad evaluation of us by the society as much as possible. Third, for our social responsibilities, we guarantee delivery, stability, and people’s livelihood. We must take active actions to ensure that the completion of the above tasks meets the requirements of the government. Fourth, we must reorganize our existing team, restore everyone’s confidence, boost morale, unite as one, and finally realize the return of our culture and the improvement of our business capabilities. “