Evergrande’s Headquarter on Tender to Settle Its Crippling Debt

• 29 July 2022
• International News
• 1519 Views

The China Evergrande Group is calling for buyers to buy its US$1.7 billion Hong Kong headquarters, according to Nikkei Asia on 28 July 2022.

CK Asset Holdings, founded by Hong Kong billionaire Li Ka-shing, has made a tender on China Evergrande Centre for US$1.7 billion, of which the price once has been on sale last year.  CK Asset over worries that Evergrande’s unresolved debt could complicate the transaction.

Evergrande used to plan to sell this building before pulling itself out from under some US$300 billion in debt, including about $20 billion in offshore bonds.

In addition, Evergrande also releases its restructuring plan by the end of this month.

However, the new wave of this debt crisis has extremely hit the company after its CEO and chief financial officer resigned last week following an internal probe that found their involvement in diverting about US$2 billion in loans.

Moreover, Evergrande has to face lawsuits filed by the creditors and suppliers who have been

outraged by repeated failures to repay their loans.

This huge debt crisis has not finished many housing projects across the country and angered homeowners, threatening to not pay until the projects are completed.

Meanwhile, some suppliers of Evergrande have warned that they will stop paying their own bank loans because of the company’s unpaid bills.

Under the stressful situation, President Xi Jinping announced that Beijing was collecting 1 trillion yuan ($148 billion) in loans to refinance stalled real estate projects.

 

• Economy and Finance