Quote:
Originally Posted by The North One
How is this gonna get built with another Chinese owner when the reason they couldn't do this was because of limits on Chinese investments in the US?
|
Because that may not be the reason.
First of all, Oceanwide was/is unusually shakey even for a Chinese conglomerate (perhaps partly as a result of their so-far-unsuccessful attempt to buy Genworth Financial, the former insurance arm of GE Capital):
Quote:
Genworth's Acquirer (China Oceanwide) Looks To Be Drowning In An Ocean Of Debt
Nov. 9, 2018 11:30 AM ET
In our previous piece we focused on signs of liquidity issues at China Oceanwide including spiking debt levels, negative operating performance, and the aggressive pledging of equity in its subsidiaries.
Today we share a deeper-dive into Oceanwide’s operations, including an overview of its leverage-fueled trophy asset development spree which has shown recent signs of stalling.
We have also identified accounting red flags, including booking $11.4 billion of “development costs” as a current asset, as well as $4.8 billion in questionable related-party receivables.
Bloomberg recently reported an Oceanwide operating sub was “scrambling to sell assets to repay debt.” With another $1.6b of key bond maturities due in Q1'19 we expect significant near-term instability.
We do not think China Oceanwide will fulfill its commitments to Genworth's policyholders and reiterate our view that this deal looks starkly at odds with the interests of policyholders . . . .
|
https://seekingalpha.com/article/422...-ocean-of-debt
SPF Capital is privately owned, unlike Oceanwide which is publicly traded, so its financials are less well known however it seems to have subsidiaries around the world including in the US SPF Capital Real Estate which owns the Crowne Plaza LA Harbor Hotel. I could find nothing indicating they are in shakey condition as Oceanwide has been known to be for at least 2 years.