(Yicai Global), April 4 — E-House China Enterprise Holdings’ shares fell yesterday after Alibaba Group Holdings, the property service provider’s second largest shareholder, defaulted on its US$300 million bond, almost a year after it defaulted. It surged after it endorsed a debt restructuring plan.
E-House Inventory [HKG: 2048] Yesterday it closed 58% higher at 61 HK cents ($8). It fell 6.6% to 57 HK cents.
E-House will use most of its stake in its unit TM Home to pay off its bonds, the Shanghai-based company’s debt restructuring plan revealed yesterday. He also added that for every $1,000 of debt he pays his creditors $60 in cash.
The company said in April last year it had defaulted on its bonds as China’s property market slumped. E-House’s net loss shrank 66% year-on-year to 3.9 billion yuan ($567 million) in the 12 months ended December 31, according to its latest earnings report. It has been. Revenue fell 43% to RMB 5 billion.
Founded by E-House and Alibaba in September 2020, TM Home is an e-commerce platform for real estate transactions. Under the debt plan, creditors will own about 54% of the joint venture, Alibaba 11%, and his E-House and its affiliates the rest.
According to E-House, TM Home’s business will cover real estate data and consulting services operated by China Real Estate Information Corporation, a real estate agency, and an online real estate marketing company operated jointly with Alibaba’s Tmall. The JV will also manage Leju Holdings, a US-listed real estate services provider, the company added.
In April 2021, Alibaba sold a majority stake in TM Home to E-House in exchange for approximately 23% of E-House’s stake. Hangzhou-based Alibaba owns about 14% of E-House as of June 30 last year, second only to founder Zhou Xin.
Editor: Martin Kadiev
