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Evergrande Required to Pay Up to $1.1 Billion in Security

Unit of Chinese property developer Evergrande faces $1.1 billion in collateral payments

Troubled real estate developer Evergrande said one of its subsidiaries, Evergrande Nanchang, was required to pay 7.3 billion yuan ($1.08 billion) to a specific sponsor because of its failure to meet its financial obligations.

During July 2021, the guarantor, whose name was not mentioned in the statement, secured the loans of specific companies of Evergrande according to recent statements to the Hong Kong Stock Exchange, while on the other hand, Nanchaeng secured counter-guarantees in the form of a pledge of about 1.3 billion shares in Singjing Bank.

Evergrande stated that as the borrowers failed to pay their debts, the complainant enforced the obligations under the guarantee and claimed against the subsidiary of the company under the pledge, and that the guarantor had priority in receiving compensation from the sale of shares, and the amount of money must cover the amount paid Before the complainant (7.3 billion yuan). Read more [95% of Evergrande Projects in China Resume].

Evergrande has said it will sell its Hong Kong headquarters through a bidding process, according to sources close to the matter, and local developer CK Asset has confirmed its bid.

With more than $300 billion in strangled financial liabilities, Evergrande attempted to sell its 26-storey China center in Hong Kong’s Wan Chai district after a potential $1.7 billion deal collapsed as part of its bid to divest its assets and raise funds. Read more [Evergrande Showing Progress In Its Business].

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