SHANGHAI, Oct 9 (Businesshala) – Six executives at heavily indebted China Evergrande Group have returned money from early redemptions of the company’s investment products, the property group said on Saturday.
Evergrande, in a liquidity crisis with more than $300 billion in liabilities as offshore bondholders fear an imminent default here, has not spoken publicly about missing recent interest payments to bondholders.
The redemption took place earlier this year and all funds were returned before Friday, the company said in a statement. It said it had served the sentence and held six accountable, but gave no details.
Between May 1 and September 7, six executives made early redemptions of 12 investment products without identifying the authorities or providing details about the nature of the products.
The company embodies China’s freewheeling era of borrowing and manufacturing. Uncertainty about its ability to meet financing obligations – equivalent to 2% of China’s GDP – has sent panic through markets.
The group has been hit by recent rating downgrades, with both S&P Global Ratings and Fitch Ratings warning of the risk of default. (Reporting by Engen Tham in Shanghai)