Evergrande says six execs have returned funds from advance redemption of products

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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.

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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.

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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.

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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)

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