fbpx

Type to search

China Creditors Race Foreign Groups For Evergrande Debts – FT

Over 360 domestic claimants have sued Evergrande for $13bn they are allegedly owed, in a bid to secure payment ahead of offshore bondholders


China Evergrande
The 12 billion yuan ($1.86 billion) Guangzhou Football Stadium is one of many unfinished projects that China Evergrande has had to hand over to local groups. A huge restructuring of the group is now about to start. Photo: Reuters.

 

More than 360 domestic claimants have sued China Evergrande for $13 billion they are allegedly owed, in a bid to secure payment from the indebted developer before efforts are made to settle debts with offshore bondholders following the company’s default last week, the FT has reported.

Evergrande issued offshore bonds totalling $19 billion, but its international creditors will have to compete against domestic lenders for repayments from the cash-strapped building conglomerate. A Chinese court assigned to handle civil lawsuits against Evergrande has accepted 367 cases with claims totalling 84 billion yuan ($13.2 billion) submitted between August 24 and December 9, when the group was declared to be in “restricted default” by Fitch Ratings, according to official records reviewed by the FT.

Read the full story: Financial Times.

 

ALSO SEE:

China Audits Evergrande and its Wealthy Chairman’s Assets

China Evergrande Debt Crisis: The Next Flash Points

Beijing Slams US Sanctions On Chinese Drug-Making Firms

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.