Chinese developer Evergrande’s unit to pay out .1 billion

Chinese developer Evergrande’s unit to pay out $1.1 billion

HONG KONG, July 31 (Portal) – Troubled developer China Evergrande Group (3333.HK) said on Sunday that one of its subsidiaries, Evergrande Group (Nanchang) Co, Ltd, has been fined a guarantor 7.3 billion yuan ($1.08 billion) payable for default on its debt obligations.

In July 2021, the guarantor, not named in the statement, guaranteed borrowing from certain Evergrande-controlled companies, the company said in a statement to the Hong Kong Stock Exchange.

Nanchang provided counter-guarantees by pledging a total of 1.3 billion shares it held in Shengjing Bank Co., Ltd (2066.HK).

“Since the borrowers failed to repay the loans, the applicant honored its obligations under the guarantee and claimed the subsidiary from the pledge,” Evergrande said in a statement.

The judgment “is that the guarantor has priority to obtain compensation from the sale of the shares,” and the “scope covers the amount paid by the applicant (7.3 billion yuan).”

Evergrande has announced it will sell its Hong Kong headquarters through a tender process, a source with direct knowledge told Portal on Thursday. Continue reading

($1 = 6.7433 Chinese renminbi yuan)

Reporting by Farah Master Editorial by Tomasz Janowski

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