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China’s Evergrande seeks legal advice over HK rural plot -Breaking


© Reuters. FILE PHOTO – The logo of China Evergrande Group can be seen at the Shenzhen headquarters in Guangdong, China, September 26th, 2021. REUTERS/Aly song/File photo

HONG KONG, (Reuters) – China Evergrande Group announced on Sunday that recievers were appointed to a parcel of land in Hong Kong’s Yuen Long rural district. This is the latest development in the battle for the developer.

According to a source who has direct knowledge, Oaktree is the creditor. Evergrande, however, did not name the creditor in the statement.

Evergrande indicated in a filing filed to the Hong Kong stock market that these assets will be charged as security in connection with a loan transaction of $520million to the group in Jan 2021.

“The company has sought legal advice in order to defend its legal rights. The company has been in discussions with the lender to resolve the issue with the goal of maximising the return for the group.

Evergrande stated that if there are assets with residual value after secured obligations have been paid, it will give preference to offshore matters.

It said the appointment of receivers for the subsidiaries and the potential sale of the relevant secured assets “would not have material impact on the operations or financial position of the group, nor affect the group’s ongoing debt restructuring exercise.”

Evergrande announced Wednesday that they aim to put together a preliminary proposal for restructuring within six months. It is trying to calm creditors worried about defaults after its financial woes began last year.

Oaktree did not respond to Reuters’ request for comment.

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