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Agile Group Holdings faces the predicament of debt defaultHuuugecasino200freespins14 May announcement that it was not paid 4Huuugecasino200freespinsInterest on preferred notes of $.83 billionHuuugecasino200freespinsThe share price fell by 12%Huuugecasino200freespins.86%. The company is actively looking for a holistic debt solution, but the cash flow pressure remains.
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[Agile Group faces debt default, shares fall 12.86% in morning trading]
On May 14, Agile Group holding Co., Ltd. (Agile) announced a debt default announcement, which attracted market attention. The announcement shows that due to liquidity pressure, the company has not yet paid interest on 2020 of the notes, which expired on May 13. On the news, Agile shares fell, closing at HK $0.61, down 12.86%.
Agile has been under liquidity pressure since 2022, and the company strives to improve the financing environment through asset sales, equity transfer, rights issue financing, debt rollover and other measures. In the wake of the current substantive default, Agile said it was looking for a holistic solution to overseas debt and would actively communicate with creditors to explore the best solution.
Agile's 2020 note is a $483 million 6.05 per cent preferred note due in 2025 and pays interest semi-annually. In the face of financing and refinancing difficulties, the company has been working hard to reduce the impact on its business and to meet its debt repayment obligations. However, the real estate industry continues to adjust, and sales in most parts of the company are still depressed, further aggravating the liquidity pressure.
Agile also said that it will continue to promote project delivery, maintain normal operations, and take measures to speed up property pre-sale and collection, so as to improve the balance sheet. Previously, Agile showed operating cash flow pressure in January 2022, selling 14 non-core properties and planning to use the proceeds as working capital.
Market analysts pointed out that Agile's default is not only a business problem of the enterprise itself, but also a common problem in the industry under the background of market overfall. At present, the financing environment of real estate enterprises is still in the doldrums, and the liquidity problem needs the attention of the industry. Kerry, the middle finger research institute statistics show that in April, the total financing of real estate enterprises showed a month-on-month, year-on-year downward trend, the overall financing environment still needs to be improved.