China Evergrande unit faces liquidation petition over unpaid sum

A CHINA Evergrande Group unit has become the target of a liquidation petition over an unpaid investment of 200 million yuan (S$37 million) and related interest.

The petition was filed by Guangdong Vanward New Electric on Aug 5 to a court in mainland China, according to a Shenzhen stock exchange filing on Wednesday (Aug 7).

The Evergrande unit, Guangzhou Kailong Real Estate, was ordered by an arbitration court to pay Vanward the investment sum and an annual interest of 10 per cent, as well as an arbitration fee of more than 1.4 million yuan. The unit was unable to make the payment, according to the filing.

Kailong has a 60 per cent stake in Hengda Real Estate, Evergrande’s main property unit, data compiled by Bloomberg show.

The petition came after liquidators of Hong Kong-listed Evergrande sought to recover US$6 billion in dividends and remuneration from seven defendants including the group’s founder Hui Ka Yan and his ex-wife Ding Yumei. BLOOMBERG