China Evergrande Group Chairman Hui Ka Yan is under investigation for suspected offshore asset transfers while the company struggles to complete its unfinished projects, according to the Wall Street Journal.
The embattled developer, Evergrande, has been seeking approval from creditors to restructure its offshore debt. However, the process became more complicated when the company announced that it couldn’t issue new debt due to an investigation into its main China unit.
In addition to these challenges, Evergrande revealed that its chairman is under police watch and is suspected of committing unspecified crimes.
Last week, RushHourDaily reported that a group of offshore creditors planned to join a court petition to liquidate Evergrande if the company failed to submit a new debt restructuring plan by the end of October.
During the week-long National Day holidays, Evergrande did not respond to a request for comment from RushHourDaily.
With over $300 billion in liabilities, Evergrande has become the symbol of the debt crisis in China’s property sector, which accounts for approximately a quarter of the country’s economy.
Trading in Evergrande’s shares and two of its units was suspended after reports emerged that Hui had been taken away by the police and was being monitored at a specific location.
Reporting by Urvi Dugar in Bengaluru; Editing by Stephen Coates. Our Standards: The Thomson RushHourDaily Trust Principles.
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