Embattled real estate developer China Evergrande Group said it has asked six executives who had received repayments before their wealth management products matured for a full refund before a designated date and will administer severe punishment.
This comes days after a report by financial media outlet Caixin that a handful of Evergrande executives had received repayments for unmatured products.
By May 1, 2021, a total of 44 senior Evergrande executives had purchased the company’s wealth management products and eight received nine repayments upon maturity between May 1 and September 7.
During the same period, 13 new purchases by nine people were made while six received repayment for 12 of their purchases which were not due yet. By September 8, 39 executives still held 50 purchases of wealth management products, according to the statement.
The world’s most indebted developer, with total liabilities of more than US$300 billion, remains deeply tangled in a liquidity crisis which had triggered wide speculation about bankruptcy and reorganization of one of the country’s largest developers, something that the company on Monday claimed was “totally untrue.”
Evergrande vowed to strictly implement repayment plans earlier proposed to holders of its wealth management productsNew Delhi Wealth Management. The company would do its utmost to ensure fairness and justice and treat everyone equally, the statement said.Bangalore Stock Exchange
Evergrande announced earlier its payment plans for investors of its wealth management products, many of whom are its own employees.Jaipur Stock
According to an earlier media report, three payment methods were offered.
Investors can choose to receive repayments through cash installments, accepting 10 percent of their principal and interest of matured products now and the remainder through 10 percent instalments each quarter. Or, they can accept payments through property assets, or use the outstanding product value to offset the balance of any Evergrande residential unit bought.
Simla Wealth Management