© Reuters. FILE PHOTO: The Evergrande Middle of China Evergrande Group is seen amid different buildings in Shanghai, China, September 24, 2021. REUTERS/Aly Tune
HONG KONG (Reuters) – Struggling developer China Evergrande Group stated on Sunday that one among its subsidiaries, Evergrande Group (Nanchang) Co, Ltd, had been ordered to pay a guarantor 7.3 billion yuan ($1.08 billion) for failing to honour its debt obligations.
In July 2021, the guarantor, who was not named within the assertion, offered a assure for the borrowings of sure entities managed by Evergrande, the corporate stated in a press release to the Hong Kong inventory trade.
Nanchang offered counter-guarantees within the type of a pledge of a complete of 1.3 billion shares that it held in Shengjing Financial institution Co., Ltd.
“Because the debtors did not repay the loans, the applicant carried out its obligations below the assure and claimed in opposition to the subsidiary below the pledge,” Evergrande stated in a press release.
The ruling “is that the guarantor has the precedence to obtain compensation from the sale of the shares” and the “scope covers the quantity paid by the applicant (7.3 billion yuan).”
Evergrande has stated it was promoting its Hong Kong headquarters by way of tendering course of, a supply with direct information advised Reuters on Thursday. [L1N2Z90FQ]
($1 = 6.7433 renminbi)