Fantasia Secures Backing for $4 Billion Offshore Restructuring
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
The Fantasia Xinian Center in Wuhan, Hubei province. Photo: VCG
Creditors of Fantasia Holdings Group Co. Ltd. overwhelmingly approved the Chinese developer’s offshore debt restructuring plan, paving the way for a potential resolution of a default that helped trigger the property sector’s cascading liquidity crisis more than four years ago.
The Shenzhen-based builder said 99.67% of voting creditors backed the proposal at a meeting held in Hong Kong on Feb. 20. Under Hong Kong law, the plan required approval from at least 50% of creditors present, representing no less than 75% of the outstanding debt by value. The restructuring must still be sanctioned by courts in Hong Kong and the Cayman Islands, with hearings scheduled for March 12.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- 99.67% of Fantasia Holdings’ creditors approved a $4.9 billion offshore debt restructuring plan, which now awaits court sanctions in Hong Kong and the Cayman Islands.
- The plan offers three options to creditors, all involving significant losses, following Fantasia’s 2021 default that destabilized China’s property sector.
- Fantasia’s operations have since contracted, with annual sales under 3 billion yuan (2022-2024), and domestic bond maturities extended to end-2026.
AI generated, for reference only
Who’s Who
- Fantasia Holdings Group Co. Ltd.
- Fantasia Holdings Group Co. Ltd. (花样年控股集团有限公司) is a Shenzhen-based Chinese developer founded in 1998. Their 2021 offshore bond default significantly contributed to China's property sector liquidity crisis. Creditors recently approved their third restructuring plan, covering over $4 billion in offshore debt. This plan offers options with substantial principal reductions. The company aggressively expanded in 2020 but faced a swift decline due to heavy borrowing and rating downgrades.
- Colour Life Services Group Co. Ltd.
- Colour Life Services Group Co. Ltd. is a property management unit of Fantasia. It agreed to sell core assets for up to 3.3 billion yuan shortly before Fantasia's default in October 2021. Fantasia controversially used part of the proceeds to redeem pledged shares and repay private debt, rather than pay public bondholders.
- Country Garden Services Holdings Co. Ltd.
- Country Garden Services Holdings Co. Ltd. was involved in a transaction with Fantasia's property-management unit, Colour Life Services Group Co. Ltd. Country Garden Services had agreed to purchase core assets from Colour Life for up to 3.3 billion yuan shortly before Fantasia's default.
- Deutsche Bank
- Deutsche Bank was involved with Fantasia Holdings Group Co. Ltd. when Fantasia redeemed shares pledged to the bank using proceeds from an asset sale. This occurred just days before Fantasia missed a bond payment, contributing to a crisis of confidence in the Chinese real estate market.
AI generated, for reference only
What Happened When
- 1998：
- Fantasia Holdings Group Co. Ltd. was founded.
- 2020：
- Fantasia began aggressive expansion, acquiring 20 land parcels and achieving record contracted sales.
- By mid-2021：
- Fantasia's total liabilities climbed to about 83 billion yuan.
- Before October 4, 2021：
- Fantasia’s property-management unit agreed to sell core assets to Country Garden Services Holdings Co. Ltd. for up to 3.3 billion yuan.
- October 2021：
- Fantasia defaulted on its debt, marking a turning point in China's real estate industry.
- October 4, 2021：
- Fantasia missed a $206 million bond payment.
- Between 2022 and 2024：
- Fantasia's annual contracted sales fell to less than 3 billion yuan.
- Early 2023：
- Fantasia started its third attempt to formalize a restructuring plan.
- December 2025：
- Fantasia secured approval to extend the maturities of five onshore bonds to the end of 2026.
- February 20, 2026：
- 99.67% of Fantasia's voting creditors approved the offshore debt restructuring plan at a meeting in Hong Kong.
AI generated, for reference only
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新