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3 Dec, 2021 15:45

Chinese govt summons Evergrande boss as firm’s debts mount

Chinese govt summons Evergrande boss as firm’s debts mount

Chinese authorities have summoned the founder of Evergrande, once China's top-selling developer which is now on brink of default, after the firm announced earlier on Friday it may be unable to repay its debt.

The real estate developer received a demand under a $260 million guarantee obligation, which it may be unable to repay due to insufficient funds, the company announced in a filing to the Hong Kong stock exchange.

It added that repayment dates under other agreements may also have to be postponed.

Evergrande has already missed one deadline to pay up on liabilities totalling $82.5 million due on November 6, as it struggles to make ends meet under more than $300 billion in debt.

Following Friday’s statement, the government of southern China’s Guangdong province, where Evergrande is headquartered, summoned Evergrande chairman Hui Ka Yan. The details of their meeting have not yet been revealed.

Prior to that, Evergrande requested that authorities send a working group to the company to help with risk management and to supervise its operations. The developer also pledged it would continue working with creditors to decide how to pay off its debts.

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