China Evergrande Group’s logo design is shown on a phone screen in this illustration picture handled September 27, 2021.
Jakub Porzycki|Nurphoto|Getty Images
Struggling designer China Evergrande Group stated on Sunday that a person of its subsidiaries, Evergrande Group (Nanchang), had actually been bought to pay a guarantor 7.3 billion yuan ($ 1.08 billion) for stopping working to honor its financial obligation commitments.
In July 2021, the guarantor, who was not called in the declaration, supplied a warranty for the loanings of particular entities managed by Evergrande, the business stated in a declaration to the Hong Kong stock market.
Nanchang supplied counter-guarantees in the kind of a promise of an overall of 1.3 billion shares that it kept in Shengjing Bank.
“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 stated in a declaration.
The judgment “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 stated it was offering its Hong Kong head office through tendering procedure, a source with direct understanding informed Reuters on Thursday.
