Evergrande Seeks to Recover $6 Billion From Seven Defendants
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(Bloomberg) — China Evergrande Group and its liquidators are seeking to recover $6 billion in dividends and remuneration from seven defendants including the developer’s founder Hui Ka Yan, a formal step toward recouping at least a fraction of creditors’ investments in the property giant.
The amount is based on allegedly misstated financial statements of Evergrande for each of the financial years ended December 2017 to 2020, the company said in a stock exchange filing on Monday. Other defendants include former Chief Executive Officer Xia Haijun, former Chief Financial Officer Pan Darong and Hui’s ex-wife Ding Yumei, according to the filing.
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- China Evergrande Group and its liquidators are seeking $6 billion from founder Hui Ka Yan and other former executives due to allegedly misstated financial statements from 2017-2020.
- The company has taken initial legal steps to recover assets following a Hong Kong High Court winding-up order, but asset recovery is uncertain.
- Hui, subjected to "mandatory measures" for suspected crimes, along with other defendants, faces asset restrictions globally.
- China Evergrande Group
- China Evergrande Group is attempting to recover $6 billion from seven defendants, including founder Hui Ka Yan, based on misstated financial statements from 2017-2020. Following a Hong Kong High Court winding-up order, liquidators are pursuing assets, but face challenges. Hui, once wealthy, lost his fortune as Evergrande faced financial distress. Former executives Xia Haijun and Pan Darong, and Hui’s ex-wife Ding Yumei, are also defendants. The company's shares remain suspended.
- Alvarez & Marsal Inc.
- Alvarez & Marsal Inc. is a restructuring consulting firm appointed by the Hong Kong High Court to act as liquidators for China Evergrande Group's liquidation case. Two managing directors from the firm have been assigned this role, symbolizing the first formal step to recover assets for Evergrande's creditors.
- By August 2023：
- Ding Yumei was listed as a 'third party independent' in Evergrande’s filing, indicating she and Hui separated.
- After September 2023：
- Hui Ka Yan was taken away by Chinese police and put under residential surveillance.
- Before February 2024：
- Ding filed a lawsuit against Hui’s second son, over HK$1 billion in loan payments.
- February 2024：
- A Hong Kong High Court gave a winding-up order to Evergrande and appointed two managing directors of Alvarez & Marsal Inc. as liquidators.
- May 2024：
- China’s securities watchdog formally announced a 4.18 billion yuan fine on Evergrande’s onshore unit Hengda.
- Friday, August 2, 2024：
- Confidentiality orders issued by Hong Kong’s High Court regarding injunctions on Hui, Ding, and Xia assets were lifted.
- Monday, August 5, 2024：
- China Evergrande Group and its liquidators filed to recover $6 billion in dividends and remuneration based on allegedly misstated financial statements for each financial year ended December 2017 to 2020.
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