EGRNF - China Evergrande appoints advisers for investigating $2.1B cash seizure

Chinese real estate developer, China Evergrande (OTCPK:EGRNF) has sought help from outside law firms and accountants to probe how banks could take control of $2B+ at a key China Evergrande subsidiary. China Evergrande will hire Reed Smith Richards Butler while subsidiary will appoint DLA Piper, Jincheng Tongda & Neal and Grant Thornton China. China Evergrande and its unit - Evergrande Property Services stated that lenders had enforced their rights over ~$2.1B of bank deposits pledged by the subsidiary to guarantee third-party borrowing, as cited by Wall Street Journal. "Preliminary investigation has revealed that the pledge of the relevant deposits and the enforcement took place in 2021," Evergrande revealed yesterday in a filing to the Hong Kong stock exchange. Trading has been halted since Mar.21 for shares of the two Hong Kong-listed companies - Evergrande and Evergrande Property Services - and another major Evergrande subsidiary, China Evergrande New Energy Vehicle.

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China Evergrande appoints advisers for investigating $2.1B cash seizure