Evergrande chairman in troubled waters: Offshore asset investigation makes waves
China Evergrande Group‘s Chairman is currently under investigation, suspected of moving assets offshore amidst the property developer’s ongoing struggle to complete unfinished projects, according to The Wall Street Journal’s report on Monday.
Evergrande, burdened with liabilities exceeding US$300 billion (11 trillion baht), has been endeavouring to secure approval from creditors to restructure its offshore debt. However, the situation became more convoluted last week as the company expressed its inability to issue new debt due to an investigation into its main China unit.
The beleaguered developer revealed on Friday that its chairman, Hui Ka Yan, was under police surveillance, suspected of committing unspecified crimes. Reuters previously reported that a group of offshore creditors intended to unite in a court petition to liquidate the developer if a new debt restructuring plan was not proposed by the end of October.
Evergrande failed to provide a response to a Reuters request for comment during the week-long National Day holidays. The company, with its massive liabilities, has become emblematic of a debt crisis in China’s property sector, which is responsible for roughly a quarter of the country’s economy.
Trading activity for shares of Evergrande and two of its subsidiaries was halted on Thursday, following the news that Hui had been apprehended by police and was being scrutinised at a designated location, reported Bangkok Post.
In related news, cyber police foiled the plans of a massive online fraud in Nakhon Pathom. A furniture manufacturing company was taking in 100 million baht in orders but they never delivered on them causing over 1,000 customers to lose their money.
A woman, 32 year old Poonnaporn, was determined to be the perpetrator as she was the proprietor of the factory and was arrested. Read HERE to find out what happened!
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