EGRNF - China Evergrande unit ordered to pay over $1B in arbitration ruling
- China Evergrande ( OTCPK:EGRNF ) ( OTCPK:EGRNY ), the Chinese property developer laden with over $300B in liabilities said its Nanchang subsidiary was ordered to pay over $1B in an arbitration ruling.
- The arbitration was started by a company that provided a guarantee for the borrowings of certain entities controlled by Evergrande ( OTCPK:EGRNF ). The Nanchang subsidiary provided counter-guarantees to the company that applied for arbitration (the applicant) in the form of 1.28B shares that it held in Shenging Bank Co. Ltd. As the borrowers failed to repay the loans, the applicant made its claim against the subsidiary under the pledge.
- The ruling said the applicant has priority to receive compensation from the sale of the shares. It is entitled to RMB 7.31B ($1.08B), which includes the amount received from the sale of the shares, plus capital occupation fee on that amount, and other expenses related to the recovery.
- Last week, Chinese Evergrande ( OTCPK:EGRNF ) was reported to have received a bid for its Hong Kong headquarters from a company controlled by Li Ka-shing.
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China Evergrande unit ordered to pay over $1B in arbitration ruling