HONG KONG (Reuters) – Debt-ridden property developer Evergrande Group missed a dollar bond interest payment deadline, moving closing to a potential default and fuelling worries that a collapse could send shockwaves through China’s economy and beyond.

Here is a timeline of events leading to Evergrande’s debt problems and what the developer has done to raise funds so far:

August 2017

Evergrande vows to cut debt for the first time, aiming to slash net gearing ratio to 70% by June 2020 from 240% in June 2017.

November 2018

Central bank names Evergrande as one of few financial holding conglomerates on its watch that it said could cause systemic risk.

March 2020

Evergrande targets cutting its debt by 150 billion yuan ($23.3 billion) annually for three years.

August 2020

Regulators meet with 12 major property developers, including Evergrande, to introduce caps for three different debt ratios in a pilot scheme dubbed “the three red lines”.

Evergrande purchases 28% of its property management units for $3 billion before the unit’s initial public offer (IPO).

The company asks Guangdong to approve Shenzhen’s backdoor listing plan. It claims that the Shenzhen plan has been inactive for over four years and could be facing a cash crunch.

September 2020

Company offers 30% discount on properties for a month to push sales.

October 2020

Evergrande raises $555 million in a slimmed-down secondary share sale in Hong Kong.

November 2020

It terminates the Shenzhen backdoor listing plan. Some strategic investors are willing to accept repayment.

Evergrande Property Services Group Ltd raises $1.8 million through its Hong Kong IPO.

January 2021

China Evergrande New Energy Vehicle Group Ltd raises $3.4 billion by bringing in six new investors.

March 2021

Evergrande sells 10% of online real estate and automobile marketplace Fangchebao to 17 investors for $2.10 billion in a pre-IPO deal.

The company aims to reach all three debt limits by 2022. Fangchebao will be listed by the company in early 2019, and it plans to spin-off its tourism and water units.

June 2021

Evergrande says it will sell over half of its 58% stake in peer China Calxon Group Co Ltd, worth $386 million.

Fitch reduces Evergrande from ‘B+ with a positive outlook to ‘B-‘.

Developer arranges HK$13.6billion ($1.75billion) to pay off a mature bond as well as interest on any other dollars bonds. It also states that it won’t have any more bonds due until March next year.

Evergrande meets one of the regulators’ debt ratio limits by reducing interest-bearing credit to around 570 billion Yuan. This is compared with 716.5 billion Yuan six months prior.

July 2021

A court orders a freeze on a 132 million yuan bank deposit held by Evergrande at the request of China Guangfa Bank Co Ltd. Evergrande says the loan is not due until March and it plans to take legal action.

Some Hong Kong banks refuse to lend new loans to Evergrande buyers for two unfinished residential projects.

Evergrande drops a proposal for a special dividend. S&P cuts its credit rating on the company by two notches to B- from B+ with a negative outlook.

Evergrande is downgraded by Fitch to “CCC++” instead of “B”.

August 2021

Evergrande agrees to sell stakes in internet unit HengTen Networks Group Ltd worth a total of HK$3.25 billion ($417.5 million).

Moody’s (NYSE 🙂 reduces Evergrande’s Corporate Family Rating (CFR), by 2 notches, to “Caa1”, from “B2”.

According to legal sources, Evergrande lawsuits will be handled centrally by Guangzhou Intermediate People’s Court.

S&P downgrades Evergrande again by two notches to “CCC” from “B-“.

According to the company, it’s currently in discussions with sellers of certain assets. These include stakes in Evergrande New Energy Vehicle (Evergrande Property Services) and Evergrande Property Services.

According to state media, construction has been stopped at two Evergrande projects located in Kunming because of overdue payments. One of the projects was due to be delivered in October to homeowners.

Evergrande claims that Hui Ka Yan has resigned as the chairman of Hengda Real Estate Group’s flagship unit. This is because of the end of its backdoor listing program.

China’s banking watchdog and central bank summon senior executives to warn Evergrande that it must reduce debt risks and prioritize stability.

Evergrande is warning of default and liquidity risks if the bank fails to restart construction and dispose of additional assets or renew loans. It also reports a 29% year-on-year drop in net profits.

September 2021

Chairman Hui Ka Yan leads a pledge-signing ceremony to promise buyers it will complete construction of their homes.

China Chengxin International Credit Rating Co. CCXI downgrades Evergrande (and its offshore bonds) to “AA” instead of “AAA”. This will erase the bonds’ value as a means for using pledged repo trading.

Moody’s reduces China Evergrande’s Corporate Family Rating (CFR) to “Ca”, from “Caa1”, and gives a negative outlook.

Fitch lowers Evergrande’s CFR to “CC” (CCC+), indicating a “probable default.”

Evergrande seeks an extension for trust loan interest payments due to creditors.

Hui, chairman of Evergrande’s wealth management company promises to return all matured products.

Evergrande’s Shenzhen headquarters is crowded with investors demanding repayment of their loans.

Evergrande claims that online speculations about restructuring and bankruptcy are “totally false”, however, it admits it faces “unprecedented problems”.

Evergrande states that it hired financial advisers in order to evaluate its options. It also warns of the possibility of cross-default due to plummeting property sales.

China Evergrande subsidiary cancels land use agreement with Anhui local government. The latter has not paid for site.

Hui states that it will be a priority for him to assist retail investors in redeeming investment products.

Two sources confirmed that Evergrande stated it had resolved a coupon payment for an onshore bond. However, a September 23 deadline to pay $83.5 million of interest on a dollar bond was passed, without any bondholders receiving compensation or hearing from them.

($1 = 6.4451 )

($1 = 7.7842 Hong Kong dollars)