Oceanwide faces tough liability management as operations unlikely to provide much cash flow

02 April 2019

Oceanwide faces tough liability management as operations unlikely to provide much cash flow

 

02 April 2019 | 08:00 BST

 

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Oceanwide Holdings Co, a Shenzhen-listed property developer-turned-financial services provider, still has a lot of work to do to manage its liabilities in 2019. On 19 March, the company announced the completion of a deal to sell four land parcels in Beijing and Shanghai for CNY 12.6bn cash, which will also reduce Oceanwide's debt by CNY 27.9bn. 

 

However, Oceanwide still has another CNY 38bn-CNY 39bn debt maturing this year, Debtwire reported on 14 March, citing a management briefing for credit investors. That includes the company’s USD 400m 8.5% notes due 28 May.  

 

To meet the rest of its obligations, Oceanwide floated a number of other options during the credit investor briefing, but operations which increasingly shifted away from property development over the past few years, are unlikely to be a major source of cash inflows in the near term to help cover the maturities. 

 

Click here for Capital Profile's 30 January report on Oceanwide ’s ultimate owner and founder Lu Zhiqiang.  

 

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