Evergrande chairman investigated over offshore asset transfers: WSJ

Published Mon, Oct 2, 2023 · 12:27 PM

Evergrande has been working to get creditors’ approval to restructure its offshore debt but the process grew more complicated last week. PHOTO: REUTERS

CHINA Evergrande Group chairman Hui Ka Yan is being investigated on suspicion of transferring assets offshore while the indebted property developer struggles to complete unfinished projects, the Wall Street Journal (WSJ) reported on Monday (Oct 2).

Evergrande has been working to get creditors’ approval to restructure its offshore debt but the process grew more complicated last week when the company said it could not issue new debt due to an investigation into its main China unit.

Adding to the embattled developer’s woes, it said on Friday that its chairman was under police watch and was suspected of committing unspecified crimes.

Reuters reported last week that a group of offshore creditors was planning to join a court petition to liquidate the developer if it did not submit a new debt restructuring plan by the end of October.

Evergrande did not immediately respond to a Reuters request for comment during the week-long National Day holidays.

With more than US$300 billion in liabilities, Evergrande has become the poster child of a debt crisis in China’s property sector, which contributes to roughly a quarter of the economy.

Evergrande sold yacht this year, say sources, as creditors sharpen focus on offshore assets

Evergrande said early this week that because Hengda is being investigated, qualifications cannot be met to issue new dollar notes that were proposed under the offshore-debt plan.

Evergrande’s extended yuan bonds are another risk hurdle for developer

Hui Ka Yan was taken away by Chinese police earlier this month, and is being monitored at a designated location under so-called residential surveillance.

The rise and fall of Evergrande founder Hui Ka Yan

Chairman Hui Ka Yan was taken away by police this month and is being monitored at a designated location.

Evergrande says chairman under criminal investigation

The three suspended entities had a combined market value of HK$16.7 billion on Wednesday, down from HK$81.4 billion before their recent trading resumptions.

Evergrande suspends trading in Hong Kong after Hui concerns

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

Trading in the shares of Evergrande and two of its units was suspended on Thursday after media reported that Hui had been taken away by police and was being monitored at a designated location. REUTERS

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

Evergrande Hui Ka Yan Property developers China property

Share with us your feedback on BT's products and services

Feedback

TRENDING NOW

Eugene Lai (left) says that he was sharing a view with Tan Chian Khong that the board needed a refresh and that it was not an explicit direction to resign.

CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh

Some industry watchers wonder if Orchard Road can hold its own next to competing retail destinations, both global and local.

What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future

Siranudh Scott had caused an internet sensation with a video accusing his brother of allegedly abusing him during his childhood years.

‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse

The exterior (left) and interior (right) views of Waterwall House, featuring glass interfaces, open voids, split levels and raw concrete walls.

Rare brutalist Singapore house opens to the public before changing hands