Hong Kong property agencies suing Evergrande to recover commissions By Reuters
[ad_1]

HONG KONG (Reuters] – Hong Kong’s two property agencies have filed a lawsuit against China Evergrande Group, claiming unpaid commissions. This is according to a court file and media reports. The pressure is building on the developer while it scrambles for funds to avoid a collapse.
Centaline sued Evergrande for HK$3.1 million (398,196) to collect overdue commissions. A court filing revealed that Midland Holdings filed a case against Evergrande in September. The South China Morning Post newspaper also reported Midland Holdings is claiming unpaid commissions of HK$43.45million for two developments in Hong Kong.
Centaline China’s executive told Reuters that they had also filed a lawsuit against Evergrande at a Guangzhou court, south China. They are seeking hundreds of millions of yuan.
Centaline told Reuters that they had filed a Hong Kong claims last month. However, Centaline declined to comment. Midland refused to comment as the matter was still in its legal process. Evergrande didn’t immediately reply to our request for comment.
The exposure of Hong Kong to China Evergrande, a debt-laden developer, is “very minimal”, at 0.05% or HK$14.79 billion. This newspaper reported Sunday, citing Paul Chan, Financial Secretary.
Evergrande made a promise to its contractors and suppliers in China that they would repay them as quickly as possible. In some cases, Evergrande offered apartments and other real estate assets as the construction of many of its properties was halted due to delayed payments.
Evergrande, with liabilities in excess of $305 Billion, has raised concerns that China’s cash crunch may spread throughout the financial system. However, this concern has since been alleviated by China’s central bank vowing last week to safeguard homebuyers.
Investor sentiment was sucked by growing concerns about Chinese property developers defaulting on their bonds and credit ratings.
The company missed two dollar bonds tranche coupon payments last month. It is now scrambling for assets to pay creditors. In the past weeks, it has prioritized repayments to offshore lenders.
($1 = 7.7851 Hong Kong dollars)
Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this website’s data including quotes and charts. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.
[ad_2]