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.
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