The Causes And Countermeasures Of The Debt Default Of Tahoe Group Co., Ltd.

Since the reform of the housing system,China’s real estate market has developed rapidly,creating a glorious era of real estate,and the real estate industry has become an important industry to promote the growth of the national economy,it has made great contribution to solving the problem of employment and improving people’s livelihood.However,the real estate industry in the process of high-speed development,but also constantly accumulating risks,the real estate bubble is growing,as a pillar of the national economy,its healthy development has been highly valued by the country.In order to guard against risks and regulate the development of the real estate market,the state has issued a series of policies to regulate and control the real estate industry,and the shortcomings of the real estate enterprise in its business model have also begun to appear,some real estate enterprise are even facing a survival crisis,real estate enterprise default on debt events also occur frequently.Based on this,an in-depth study on debt default of real estate enterprises can provide theoretical guidance for real estate enterprises to prevent debt default risk and resolve debt crisis,which will promote the healthy development of China’s real estate industry,it has a certain practical significance.Tahoe Group Co.,Ltd.is a large-scale well-known real estate enterprises,once as a black horse in the real estate industry,jumped into a hundred billion real estate enterprises,in July2020,Tahoe Group Co.,Ltd.declared the first bond default,it got a lot of attention for a while.Tahoe Group Co.,Ltd.as one of the top 50 real estate enterprise in the real estate industry that have defaulted on their debts,has a high frequency of default and a large amount of money involved,which is typical among the real estate enterprises that have defaulted.Therefore,this thesis takes Tahoe Group Co.,Ltd.as a case study.First of all,this thesis reviews the relevant literature at home and abroad,and on this basis,discusses and explains the general causes of debt default and the impact of debt default,it also explains the related problems of debt default by expounding the related basic theories.Secondly,this thesis briefly introduces the basic situation of Tahoe Group Co.,Ltd.at the same time,it combs the event of debt default,reviews the debt default as a whole,and analyzes the impact of debt default.Then,from the macro-environment,the company’s business model,investment strategy and debt financing situation,and combined with the relevant financial indicators,the thesis specifically analyzes the reasons for debt default,through the analysis,it is found that the slow turnover under high debt leads to the explosion of debt default.In the end,this thesis puts forward some strategies to deal with the default of the debts,aiming at the specific reasons of the debts default of Tahoe Group Co.,Ltd.and combining with the problems in its management,to provide reference for getting out of financial difficulties.Through the specific analysis of the situation of Tahoe Group Co.,Ltd.default,found that the causes of debt default include external and internal reasons.The external causes are mainly the tightening of financial policies and the regulation of real estate industry policies,which have led to the deterioration of enterprises’ financing environment,compounded by the impact of the COVID-19,and the obstruction of sales proceeds,directly led to the outbreak of a debt default.The internal reasons include the company’s low turnover business model,focusing on high-quality residential,commercial real estate accounted for a high percentage,the company’s poor operating capacity,for Tahoe Group Co.,Ltd.debt default buried hidden danger;improper investment strategy planning,the aggressive expansion,the diversification strategy implementation effect is not good,intensifies the company cash flow pressure,fundamentally causes the debt default outbreak;the debt financing proportion is high,the repayment ability is not good,the internal structure of the debt is not reasonable,the company is under a lot of pressure to pay its debts,accelerating the outbreak of debt default.In view of the reasons for the default of Tahoe Group Co.,Ltd.’s debt,this thesis puts forward corresponding countermeasures to prevent the risk of debt default,which mainly include:adapting to the macroeconomic environment,accurately grasping the policy dynamics,and preventing the policy risks;reduce product positioning,introduce the concept of asset-light management to enhance the company’s operating capacity;strengthen investment management,optimize capital allocation,adjust the investment strategy of the enterprise;do a good job in financing planning,appropriately reduce the scale of liabilities,improving the capital structure.