Evergrande faces fresh calls for legal action after $2.1bn seized by undisclosed lenders - reports

Bondholders threatened to sue

clock • 2 min read
Evergrande previously accused of lack of communication
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Evergrande previously accused of lack of communication

Embattled Chinese property developer Evergrande is facing fresh calls for legal action after keeping investors in the dark after over $2.1bn in deposits at its property services unit was claimed by undisclosed lenders, the FT reported on Wednesday (23 March).

A group of bondholders has threatened to sue Evergrande, the world's most indebted company, with around $300bn in total liabilities. A source directly involved with the situation reportedly said plans for legal action were already prepared. They said investors felt they had "no choice" but to take Evergrande to court after this latest revelation. The debt investors - said to include Saba Capital, Redwood Capital Management and Ashmore - met on Tuesday and instructed lawyers to carry out the legal analysis needed to decide whether to take action against Evergrande. Chinese policymak...

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