Evergrande creditors sue for claims topping 84 billion yuan

[HONG KONG] Chinese creditors have sued China Evergrande Group for more than US$13 billion in allegedly overdue payments, according to a report. A Chinese court assigned to handle civil lawsuits against Evergrande accepted 367 cases, with claims totalling 84 billion yuan (S$18 billion), the Financial Times reported, citing official records.

The cases were accepted between late August and earlier this month, the report said - in the period after financial regulators told the developer to resolve its debt problems and up to Fitch Ratings' downgrade of the developer to "restricted default" last week.

Meanwhile, Shimao Group Holdings jumped as much as 11 per cent in Hong Kong trading on Thursday (Dec 16) after its shares had fallen to a decade low. Calm also returned on Thursday to China's junk YS dollar bond market, with average prices rising as much as 2 cents on the dollar in morning trade after Citigroup strategists turned "overweight". Shimao's note due 2022 climbed 1.9 cents to 60.5 cents on the dollar after a 3-day rout.

China's financial regulator is coordinating negotiations between Shimao and some trust firms for loan extensions, according to people familiar with the matter, a sign that authorities want to prevent a cash crunch at the embattled developer.

It is unclear what sweeteners Shimao has presented to gain extensions and whether its offer will be accepted. Shimao is also seeking new loans from banks, one of the sources said.

BLOOMBERG