China Evergrande Group Chairman Hui Ka Yan is facing an investigation for suspected offshore asset transfers while the company struggles to complete its unfinished projects, according to the Wall Street Journal. Evergrande has been trying to obtain creditors’ approval to restructure its offshore debt, but the process became more complicated when it announced that it couldn’t issue new debt due to an investigation into its main China unit. Furthermore, the company revealed last week that its chairman was under police surveillance and suspected of committing unspecified crimes. With over $300 billion in liabilities, Evergrande has become the symbol of a debt crisis in China’s property sector.
Last week, Reuters 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. Evergrande did not immediately respond to a request for comment during the National Day holidays. Trading in Evergrande’s shares and two of its units was suspended after reports surfaced that Hui had been taken away by the police and was being monitored at a designated location. The company’s ongoing struggles highlight the deepening crisis in China’s property sector, which accounts for about a quarter of the country’s economy.
In conclusion, Evergrande Group’s Chairman, Hui Ka Yan, is under investigation for suspected offshore asset transfers while the company grapples with incomplete projects. The property developer has been trying to restructure its offshore debt with creditors’ approval, but the situation became more complex when it disclosed that it couldn’t issue new debt due to an investigation into its main China unit. Last week, the company further revealed that its chairman was under police watch and suspected of unspecified crimes. With liabilities exceeding $300 billion, Evergrande has become the face of a debt crisis in China’s property sector. A group of offshore creditors is planning to join a court petition to liquidate the company if a new debt restructuring plan is not submitted by the end of October.