HomeBusinessChina's Evergrande seeks legal advice over HK rural plot

China’s Evergrande seeks legal advice over HK rural plot

HONG KONG : China Evergrande Group mentioned on Sunday that recievers have been appointed for a plot of undeveloped land in Hong Kong’s rural Yuen Long district, within the newest improvement to hit the debt-laden developer.

A supply with direct information mentioned the creditor is Oaktree. However Evergrande didn’t point out the identify within the assertion.

The property are charged as safety for a financing transaction for $520 million superior to the group in January 2021, Evergrande mentioned in a submitting to the Hong Kong inventory trade.

“The company is seeking legal advice to protect the legal rights of the company. At the same time, the company is in active discussions with the lender on resolving the matter with a view of reaching a resolution thereby maximising the return to the group.”

If there’s residual worth on the property after the secured obligations have been discharged, Evergrande mentioned it might give precedence to offshore affairs.

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

Evergrande mentioned on Wednesday it goals to have a preliminary restructuring proposal in place inside six months because it scrambles to reassure collectors spooked by defaults since its funds started to unravel final 12 months.

Contacted by Reuters, Oaktree declined to remark.

(Reporting by Farah Master and Clare Jim; modifying by Barbara Lewis)

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