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Evergrande details US$127 billion pile of liabilities as Chinese developer’s debt, unpaid bills and lawsuits mount
- Overdue debt, unpaid bills, and payments involved in lawsuits have piled up to nearly US$127 billion, the company revealed in a stock-exchange filing
- Evergrande is facing 1,426 unresolved lawsuits involving a total of 349.6 billion yuan as of April, according to the filing
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Elise Makin Beijing
China Evergrande Group said on Monday evening that its overdue debt, unpaid bills, and payments involved in lawsuits have piled up to nearly 900 billion yuan (US$127 billion), revealing the depth of the debt and legal woes the mainland Chinese developer faces amid its restructuring struggle.
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The embattled developer said its overdue debts, excluding onshore and offshore bonds, amounted to around 272.5 billion yuan as of April, according to a Shenzhen Stock Exchange filing concerning its major litigation and failure to repay due debts. Its overdue commercial bills amounted to around 246 billion yuan.
On the legal front, Evergrande is also facing 1,426 unresolved lawsuits involving a total of 349.6 billion yuan as of April, according to the filing.
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The developer was named a dishonest debtor in six cases in April by courts around the country for failing to “fulfil the obligations determined by effective legal documents despite its capability”. It was also ordered to pay out 2.92 billion yuan in 130 new enforcement notices.
Evergrande’s stakes in some of its subsidiaries and joint-stock companies were also frozen in accordance with 27 court orders.
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