China Evergrande, a confused Chinese real estate developer, said CEO resigned late Friday.
of publicationAccording to the company, CEO Xia Haijun has resigned from one of its subsidiaries in a plan to pour $ 2 billion into Evergrande’s funding.
Preliminary research revealed that the funds belonging to Evergrande Property Services were used as collateral to guarantee a series of loans. This money was diverted to Evergrande through a third party.
When the loan wasn’t repaid at the end of last year, the bank seized $ 2 billion from the property management department. In March, Evergrande postponed the filing of its annual financial results, saying it needed to investigate why the bank requested funding from Evergrande Property Services.
Evergrande, who did not identify the third party that promoted the loan, said the money was used for “general business” but did not go into details.
China Evergrande Said We asked Mr. Xia and his chief financial officer, Pan Darong, to resign from involvement in the plan along with one other executive. Evergrande did not identify the role played by the executives, but Xia and Pan said they “did not disagree” with the board regarding their resignation.
Evergrande announced that it will announce a restructuring plan later this month. Formerly China’s largest real estate developer, the company repays creditors over $ 300 billion in debt after the government has forced debt-bearing real estate companies to curb debt, prevent payments to suppliers and complete projects. I had a hard time doing it. The company became the default in December.
The debt problems facing Evergrande have spread to other over-extended real estate developers in China, fueling concerns about a potential housing crisis that could threaten an already fragile economy. Evergrande said it has appointed Siu Shawn, executive director of the company, as chief executive officer. Qian Cheng has been appointed as the new Chief Financial Officer.
An independent committee investigating $ 2 billion from Evergrande Property Services is expected to complete its work and publish a report as soon as possible. Evergrande also said it is in the process of developing a repayment plan with its subsidiary and is considering appointing a consultant to review internal control and risk management.
Claire Fu Contributed to the research.
