File photo: March 26, 2018, exterior of the China Ever Grande Center in Hong Kong, China. Reuters / Bobby Yip / FILE PHOTO / FILE PHOTO / FILE PHOTO
September 18, 2021
BEIJING (Reuters) – Six executives from China’s heavily indebted Evergrande have pre-paid some of the company’s investment products earlier this year, the real estate group said on Saturday.
Between May 1 and September 7, six executives made early redemptions of 12 investment products, Evergrande said in a statement on its website to identify the executives and learn more about the nature of the products. Said without saying
“Group companies are taking this issue seriously in connection with the early redemption of Evergrande Wealth investment products by certain managers,” the company said.
Evergrande said six managers demanded that all pre-redeemed funds be returned within a certain period.
It said it would also impose severe penalties.
With more than $300 billion in debt, Evergrande is on the verge of a liquidity crisis and is competing to raise money to pay off multiple lenders and suppliers.
The company is a symbol of China’s bohemian lending and construction era. Uncertainty about its ability to meet its financing obligations, which is equivalent to 2% of China’s GDP, is disrupting the market.
The group has recently been downgraded and both S&P Global Ratings and Fitch Ratings have warned of default risks.
(Reporting by Ryan Woo, edited by Richard Pullin)
Evergrande says six executives have cashed in on its investment products in advance
source link Evergrande says six executives have cashed in on its investment products in advance