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Evergrande says six execs have returned funds from advance redemption of products

Evergrande says six execs have returned funds from advance redemption of products
Evergrande says six execs have returned funds from advance redemption of products   -   Copyright  Thomson Reuters 2021
By Reuters

SHANGHAI – Six executives of heavily indebted China Evergrande Group have returned funds from early redemptions of the company’s investment products, the property group said on Saturday.

Evergrande, in a liquidity crisis with over $300 billion in liabilities as offshore bondholders fear an imminent default https://www.reuters.com/world/china/chinese-markets-return-break-more-evergrande-angst-2021-10-07, has not spoken publicly about missing recent interest payments to bondholders.

The redemption occurred earlier this year and all funds were returned in full before Friday, the company said in a statement. It said it has imposed punishment and held the six accountable, but gave no details.

Between May 1 and Sept. 7, the six executives made early redemptions of 12 investment products without identifying the executives or giving details on the nature of the products.

The company has epitomised China’s freewheeling era of borrowing and building. Uncertainty about its ability to meet funding obligations – equal to 2% of China’s gross domestic product – has sent jitters through markets.

The group has been hit by recent ratings downgrades, with both S&P Global Ratings and Fitch Ratings warning of the risk of default.