Debt-laden Evergrande gets enforcement notice for $4.48bn
Shengjing Bank says it provided the loans to the Chinese property behemoth in 2020 and 2021
01 November 2022 - 18:30
byAgency Staff
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A vessel travels past some buildings developed by China Evergrande, in Danzhou, Hainan province, China, January 7 2022. Picture: ALY SONG/ REUTERS
Debt-laden property developer China Evergrande Group said on Tuesday its unit received a notice of enforcement for unrecoverable funds from Shengjing Bank.
The bank said it failed to recover funds totalling 32.595-billion yuan ($4.48bn), which was provided to the unit from 2020 to 2021, according to Evergrande.
In early September, state-owned companies of the Chinese northeastern city of Shenyang bought Evergrande’s shareholding in Shengjing Bank in an auction for 7.3-billion yuan.
The Evergrande unit’s 30.99% stake in Xinjiang Guanghui Industry Investment Group, which it had pledged to the bank has now been enforced, the notice said.
Evergrande, which has about $300bn in debt, said the pledged equity interest has not been auctioned or sold to a third party.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Debt-laden Evergrande gets enforcement notice for $4.48bn
Shengjing Bank says it provided the loans to the Chinese property behemoth in 2020 and 2021
Debt-laden property developer China Evergrande Group said on Tuesday its unit received a notice of enforcement for unrecoverable funds from Shengjing Bank.
The bank said it failed to recover funds totalling 32.595-billion yuan ($4.48bn), which was provided to the unit from 2020 to 2021, according to Evergrande.
In early September, state-owned companies of the Chinese northeastern city of Shenyang bought Evergrande’s shareholding in Shengjing Bank in an auction for 7.3-billion yuan.
The Evergrande unit’s 30.99% stake in Xinjiang Guanghui Industry Investment Group, which it had pledged to the bank has now been enforced, the notice said.
Evergrande, which has about $300bn in debt, said the pledged equity interest has not been auctioned or sold to a third party.
Reuters
Profits at China’s top banks jump in third quarter
Macau reimposes Covid curbs after outbreak at casino
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Chinese property developers delay debt restructuring until after Communist ...
MARCO BARBIERI: Are we seeing early signs of Japan-style deflation in China?
China offers $148bn in loans as property crunch deepens
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.