Chinese developer Fantasia loses two directors

Texas News Today

A few days after the Chinese developers were troubled by an unexpected failure to repay the $206 million bond, which matured, he resigned.

Fantasia said late Monday that the resignations of Hohmann and Prisilavone, who chaired the audit committee, came into force in Hong Kong with immediate effect. “Mr. Ho expressed concern that he did not have timely sufficient information on some important matters of the Company.

Fantasia’s October 4 default, coupled with low sales from Chinese developers, has raised concerns that difficulties in the sector extend far beyond China’s afflicted Evergrande Group...

Real estate bonds fell last week, with China’s junk-bond real estate-dominated ICE BofA index down nearly 20.7% as of Monday.

A Hong Kong-listed company said it was looking for a new board member to replace Wong and Ho.

Local stock exchange regulations require a company to have at least three independent directors, who must make up at least one-third of the total board of directors. At least one person should have an accounting qualification or relevant expertise in accounting or financial management. The company said that of the seven current directors of Fantasia, only one is an independent and does not have the necessary experience.

Fantasia, headquartered in Shenzhen, says it is getting support from local governments and others to solve the problem. Houlihan Loki Inc., a restructuring specialist in the United States. and hired the law firm Siddeley Austin for advice.

Shares of Fantasia have been suspended since September 29. According to Refinitiv, dollar-denominated bonds through March 2024 were estimated at 19.5 cents in the dollar on Monday, up from 49.1 cents the previous month.

Most of the high-end developers are owned by Zeng Qinghong, also known as Baby Zen, the niece of former Chinese Vice President Zeng Qinghong. According to the interim report, as of the end of June, 47 projects are under construction in cities across China, including Beijing, Wuhan, Tianjin and Ningbo.

write to Anniek Bao ([email protected])

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