Latest news with #EmperorInternationalHoldings
Business Times
4 days ago
- Business
- Business Times
Hong Kong builder Emperor revises debt plan, seeks loan extensions
Hong Kong's property slump is weighing on a range of local developers, with a well-known but smaller-scale builder the latest to seek relief from creditors. Emperor International Holdings has sent a revised debt restructuring proposal to some lenders in recent days, seeking to extend the maturity of its bank borrowings to Dec 31, 2027, according to people familiar with the matter. The company earlier reported that it had HK$16.6 billion (S$2.7 billion) in overdue bank loans, breaching certain terms on the facility agreements. Banks with a majority interest in Emperor International's loans have formed a coordination committee to negotiate restructuring terms with the company, the people said, asking not to be identified discussing private matters. No agreement has been reached so far despite months of talks, they added. Emperor International is the property arm of conglomerate Emperor Group, known for its luxury watch business and its entertainment unit, which manages a stable of local celebrities, including Nicholas Tse and Joey Yung, according to its website. The company's debt woes reflect the widespread impact of Hong Kong's years-long property slump, which has left real estate giants such as New World Development and smaller firms such as Emperor International and Grand Ming Group Holdings struggling to stay afloat. Property prices in the city have plummeted by around 30 per cent over the past four years, reaching a nine-year low as banks have tightened credit lines, according to Bloomberg-compiled data. Property developers are navigating industry-wide pressure and Emperor International is no exception, but continues to operate as usual, with constructive negotiations underway for some time with banks to amend terms, and normal financial procedures are currently being processed, the company said in an e-mailed statement in response to a Bloomberg inquiry about its debt talks. The company also said that it maintains a healthy balance sheet position. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The latest revision came after banks rejected an earlier proposal that the company sent in March, the people added. Under the previous plan, Emperor had sought a three-year extension on the borrowings and offered second-lien mortgages on some of its commercial real estate in Hong Kong as a credit enhancement, the people said. Emperor International, which owns residential properties and office towers in Hong Kong, Beijing and overseas, also offered about HK$77 million in fresh funding to service debt repayment in its earlier proposal, but banks demanded more upfront funds, the people added. The developer has missed interest payments on some loans since last year, people familiar with the matter said. Emperor International said in June that it was negotiating with banks on a restructuring plan. As at Mar 31, 2025, Emperor had net current liabilities of HK$13.08 billion, versus cash, bank balances and bank deposits of HK$639.6 million, according to its most recent annual results. The company has a market capitalisation of HK$1.13 billion, according to Bloomberg-compiled data. BLOOMBERG
CNA
10-07-2025
- Business
- CNA
Commentary: Hong Kong's tycoons are damaging the city's credit culture
HONG KONG: How creditworthy are Hong Kong's billionaire tycoons? Despite the glamour and prestige they project, the city's old money are dishing out one nasty surprise after another. As bankers and investors wake up to the reality that they might never be made whole, the easy credit culture long afforded to the elite will inevitably come to an end. New World Development 's decision not to repay coupons on its perpetual notes was a rude awakening, but it was by no means an outlier. Emperor International Holdings, a fellow developer that sells luxury apartments, said it had HK$16.6 billion (US$2.1 billion) in bank borrowings that are either overdue or have breached loan covenants, which may result in immediate repayment requests. Emperor is a household brand in Hong Kong. The 82-year-old patriarch Albert Yeung started with a jewellery store in the late 1960s, selling Rolex and Omega watches. But over the years, the 'king of clocks and watches' expanded into media and real estate. Emperor Entertainment, in particular, is closely associated with local culture. It manages a roster of canto-pop singers and actors, such as Nicholas Tse. LOSING FAITH Or consider Far East Consortium International, which went public more than half a century ago. The builder, known for projects at the city's iconic old Kai Tak airport, has pan-Asia ambition. It has joined forces with Chow Tai Fook – New World's parent – to develop a casino complex in Brisbane ahead of the 2032 Summer Olympics. Just like New World, Far East is sowing confusion among its US$360 million perpetual note holders. In its latest annual report released in late June, the company said it would no longer pay dividends. Investors are now worried that it would follow its business partner's footsteps by not repaying coupons. The builder's open market operations are equally alarming. In the fiscal year ending March, it bought US$4 million principal amount of perpetuals but resold at a loss. This is a sharp turn of events. Last September, Far East won a concession from its investors, buying time to redeem debt. The builder promised then that it would 'aim to initiate partial call' in the first quarter of 2025. Its own trading activities suggest it has not done so. TOO BIG TO FAIL? Until recently, the city's old money had it easy. The name brand itself spelled investment grade. As of last June, nearly 70 per cent of New World's bank loans were unsecured. In addition, local borrowers could issue bonds governed by English law. By comparison, dollar notes from mainland developers, such as China Evergrande Group, had to follow New York law. For issuers, this law might be more stringent in the event of consent solicitation, where a company asks to change the terms of its securities. But that leniency is running thin. Granted, New World managed to eke out an US$11.2 billion loan refinancing deal – perhaps because when it owes banks so much money, it owns them. Others may not be so lucky. Already, lenders are tightening the screws on smaller developers, asking for more collateral and halting new loans altogether. As for bond investors, they no longer assume Hong Kong businessmen would act any differently from those in the mainland. They are not.
Business Times
30-06-2025
- Business
- Business Times
Hong Kong builder Emperor shares drop after it says debt overdue
[HONG KONG] Hong Kong developer Emperor International Holdings shares fell the most this year on Monday (Jun 30) after it reported overdue bank loans and said it's talking to banks on a restructuring plan. The real estate firm had more than HK$16.6 billion (S$2.7 billion) overdue as at Mar 31 'and/or the Group has breached certain terms of the loan agreements', according to a filing to the Hong Kong stock exchange late Friday. 'The banks may request immediate repayment of these bank borrowings,' the company said in the filing. Its shares-which trade at penny stock levels-dropped as much as 16 per cent in Hong Kong on Monday morning, the biggest intraday decline since August 2024. They later pared some of the losses to HK$0.21 per share. A years-long property crisis in China has increasingly pressured Hong Kong developers, from bigger indebted builders such as New World Development to smaller ones, including Emperor. Property prices in the city have fallen around 30 per cent over the past four years, and are now around a nine-year low, as banks tighten credit lines. Emperor International also reported a widening loss of HK$4.7 billion in the year ending end of March. 'Some cash-strapped Hong Kong developers could leave banks in a tight spot unless they urgently raise cash or ask lenders for leniency.' Bloomberg Intelligence analysts Patrick Wong and Francis Chan wrote in a note on Monday. 'Falling Hong Kong property prices risk forcing banks into write downs if distressed loans pile up.' BLOOMBERG
