China Evergrande Group’s brand is displayed on a cellphone display screen on this illustration picture taken on September 27, 2021.
Jakub Porzycki | Nurphoto | Getty Images
A day after China Evergrande’s shares were suspended in Hong Kong, the beleaguered Chinese property agency revealed that its director and government chairman is underneath scrutiny over suspected crimes.
Hui Ka Yan “has been topic to necessary measures in accordance with the legislation as a consequence of suspicion of unlawful crimes,” Evergrande stated in a statement to the Hong Kong Stock Exchange late Thursday.
As such, the corporate’s shares will stay suspended till additional discover.
This follows a Bloomberg report on Wednesday that stated Hui had been “positioned underneath police management.”
Bloomberg stated that Hui was taken away by Chinese police earlier this month and is being monitored at a delegated location, citing folks conversant in the matter.
Late Thursday, Evergrande released a separate filing relating to the standing of its subsidiary Hengda Real Estate Group, which most just lately did not pay the principal and curiosity for a 4 billion yuan ($547 million) bond that was due Sept. 25.
Evergrande stated that as of end-August, Hengda had a complete of 1,946 pending litigation circumstances which concerned greater than 30 million yuan every, with the overall quantity concerned of roughly 449.298 billion yuan ($61.61 billion).
Total unpaid money owed from Hengda amounted to roughly 278.53 billion yuan, with overdue industrial payments of about 206.777 billion yuan.
In the identical submitting, Evergrande revealed there have been 163 new enforcement circumstances towards Hengda Real Estate in August, involving a complete quantity of roughly 9.13 billion yuan, though it didn’t elaborate on the character of the circumstances.
Hengda additionally noticed 68 new circumstances the place its fairness curiosity in subsidiaries and investee corporations have been frozen as a outcome of enforcement actions towards it.
Evergrande was at one time China’s largest non-public sector developer by gross sales.
The world’s most indebted real estate company defaulted in 2021 and its shares have been suspended in March final yr. They solely simply resumed buying and selling in late August after a 17 month hiatus.
Just this week, Evergrande stated that as a consequence of an investigation into Hengda it was unable to concern new notes underneath its debt restructuring plan.
It additionally delayed a debt restructuring assembly with collectors that was due Monday, saying in a filing “the gross sales of the Group has not been as anticipated by the corporate,” since its March debt restructuring announcement.
As such, Evergrande “considers it essential to re-assess the phrases of the proposed restructuring to fulfill the corporate’s goal state of affairs and the demand of the collectors.”
In August, Evergrande, together with affiliate Tianji Holdings and its subsidiary Scenery Journey applied for Chapter 15 bankruptcy protection in a U.S. courtroom.