Wanda eyes hotel sale to ease liquidity crunch

Dalian Wanda Commercial Management is looking to sell a hotel in Shanghai to Fosun International (0656), a report said.

Wanda is planning to sell the Wanda Reign Hotel in Shanghai apart from selling several shopping malls to ease a liquidity crunch, the report by Caixin revealed.

Earlier this month, Bloomberg reported that Wanda is in discussions with lenders to refinance a US$275 million (HK$2.15 billion) private debt facility that matures in June, citing people familiar with the matter.

Credit Suisse, the facility's arranger, has been organizing calls with lenders for at least a month about refinancing the deal, the report said, adding that the facility is backed by Wanda's equity in Hollywood filmmaker, Legendary Entertainment.

The group faces at least US$1.18 billion of bond obligations for the rest of 2023.

It comes as China Evergrande's (3333) unit said the indebted developer's overdue debts, excluding both onshore and offshore bonds, were 272.5 billion yuan (HK$301.5 billion) as of the end of April. The overdue commercial bills amounted to 246 billion yuan. It also faced some 1,400 unresolved lawsuits against it, involving a total of 349.6 billion yuan by last month.

Its electric vehicle unit China Evergrande New Energy Vehicle (0708), meanwhile, said its Tianjin plant has resumed full production since May 23 and will accelerate the production and delivery of its Hengchi 5 model.