06/08/2024 – 10:56
China’s Evergrande Group is seeking to recover $6 billion now owned by seven individuals including its founder, it announced Monday, accusing Hui Ka Yan of misrepresenting financial statements to make more money. The move comes amid an ongoing sell-off at the former real estate giant.
Evergrande said liquidators began legal proceedings in Hong Kong in March to recover dividends and remuneration totaling about $6 billion “paid by the company based on allegedly misstated financial statements” for the years 2017 to 2020.
The company, once one of China’s biggest property developers, was ordered by a Hong Kong court in January to wind up after a series of debt defaults and failures to secure restructuring terms with creditors.
Evergrande defaulted on dollar bonds in 2021 after accumulating more than $300 billion in liabilities, playing a role in triggering a broader housing crisis in China. Source: Dow Jones Newswires
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