China actual property ex-billionaire Lam Lung On, chairman of Yuzhou Properties, has “just lately” purchased on the secondary market about $3.55 million of debt issued by the corporate, Yuzhou stated in an announcement Thursday night.
The purchases come amid concern about money circulate, transparency and defaults in a China actual property business that’s battling excessive debt and sluggish gross sales. Mid-sized developer Fantasia defaulted on $206 million of debt on Oct. 4. (See earlier put up.) Buyers are awaiting particulars of a attainable funding in Evergrande Property Companies that would cut back strain on China Evergrande Group, the world’s most closely indebted developer which has additionally missed funds.
Click on right here for particulars of Lam’s purchases. The six bond points that Lam bought debt from have mixed borrowing of almost $2.7 billion. Fitch assigned Yuzhou a B+ credit standing final month (see Fitch report right here).
Yuzhou’s Hong Kong-traded shares have misplaced 65% of their worth up to now yr and almost half up to now six months, pushing Lam out of the ranks of the world’s billionaires. He was value $1.1 billion on the 2021 Forbes Billionaires Record launched in April; right now, he’s value an estimated $800 million, largely from dividends acquired over time.
Lam based Xiamen-headquartered Yuzhou in 1994. Earlier than founding the corporate, Lam labored for Xiamen Land Improvement, a state-owned enterprise.
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