Real Estate

Evergrande Unit Launches $280m Legal Case Against Parent

 

A unit of embattled real estate giant China Evergrande has launched legal proceedings against its parent group, among others.

Evergrande Property Services Group said on Tuesday one of its units, Jinbi Property Management Company, had turned to the courts in a bid to recover about 2 billion yuan ($279.60 million) of deposit certificate pledge guarantees.

The proceedings are related to the enforcement of Evergrande Property Services’ deposit pledge of about 13.4 billion yuan.

Jinbi Property has also commenced legal proceedings against Shenzhen Qihang Metals Materials Company, Guizhou Guangjuyuan Real Estate Development and Hengda Real Estate Group Guiyang Property.

 

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In February, parent Evergrande had said it was in talks with Evergrande Property Services to repay the funds.

In July 2022, Evergrande’s chief executive and its finance head resigned after a preliminary probe found their involvement in diverting loans secured by Evergrande Property Services.

Evergrande was investigating how deposits worth 13.4 billion yuan belonging to Evergrande Property Services were used as collateral for pledge guarantees and seized by banks.

Evergrande Property Services has received a notice from the Guangzhou Intermediate People’s Court of Guangdong Province formally accepting the filing of the case, it said on Tuesday.

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

Evergrande Chief’s Two Luxury Mansions ‘Seized by Creditor’

Evergrande ‘Offering Offshore Creditors 30% Stake in Two Units’

Fears Over Evergrande Debts Spurs Run on China Bank – CNN

Shares of China Evergrande, Its Property and EV Units Suspended

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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