Evergrande says six execs redeemed investment products in advance By Reuters
BEIJING (Reuters) – Six executives of China’s heavily indebted Evergrande had redeemed some of the company’s investment products in advance earlier this year, the property group said on Saturday.
Evergrande stated that the six executives had made 12 early redemptions between May 1, and Sept 7, without giving any details or identifying them.
The company stated that it takes the issue seriously regarding the premature redemption of Evergrande wealth investments products by certain managers.
Evergrande stated that it requested the return of all funds received by six managers within a specified time period.
It also stated that severe penalties would be applied.
Evergrande is in liquidity distress with more than $300 billion in debts. This has forced it to race to get funds to pay its numerous suppliers and lenders.
This company is a symbol of China’s freewheeling, building-oriented era. Markets have been jittery due to uncertainty about the company’s ability to fulfill its funding obligations, which are equal to 2% China’s gross national product.
The group has been hit by recent ratings downgrades, with both S&P Global (NYSE:) Ratings and Fitch Ratings warning of the risk of default.
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