Chinese developer Evergrande's unit ordered to pay out $1.1 bln

Shengjing Bank Co

31/07/2022 14:39

HONG KONG, July 31 (Reuters) - Struggling developer China
Evergrande Group  3333.HK  said on Sunday that one of its
subsidiaries, Evergrande Group (Nanchang) Co, Ltd, had been
ordered to pay a guarantor 7.3 billion yuan ($1.08 billion) for
failing to honour its debt obligations.
    In July 2021, the guarantor, who was not named in the
statement, provided a guarantee for the borrowings of certain
entities controlled by Evergrande, the company said in a
statement to the Hong Kong stock exchange.
    Nanchang provided counter-guarantees in the form of a pledge
of a total of 1.3 billion shares that it held in Shengjing Bank
Co., Ltd  2066.HK .
    "As the borrowers failed to repay the loans, the applicant
carried out its obligations under the guarantee and claimed
against the subsidiary under the pledge," Evergrande said in a
statement.
    The ruling "is that the guarantor has the priority to
receive compensation from the sale of the shares" and the "scope
covers the amount paid by the applicant (7.3 billion yuan)."
    Evergrande has said it was selling its Hong Kong
headquarters via tendering process, a source with direct
knowledge told Reuters on Thursday.  L1N2Z90FQ 
    
 ($1 = 6.7433 Chinese yuan renminbi)

 (Reporting by Farah Master
Editing by Tomasz Janowski)
 ((farah.master@thomsonreuters.com; +852 3462 7709;))