China Evergrande’s Hengda racks up even more lawsuits; debts grow

By Marisa Wong

Los Angeles, Nov. 1 – China Evergrande Group issued an update on Wednesday relating to subsidiary Hengda Real Estate Group Co., Ltd.’s involvement in material litigation and failure to repay debts due.

As of the end of September, Hengda had a total of 1,961 pending litigation cases that involved more than RMB 30 million each, with the total amount involved coming to roughly RMB 453.417 billion.

Also as of the end of September, the subsidiary’s unpaid debts amounted to RMB 280.83 billion.

The company additionally reported that as of the end of September overdue commercial bills totaled about RMB 206.084 billion.

During September, there were 118 new enforcement cases against Hengda involving a total amount of about RMB 15.273 billion.

During that same month, there were 18 new cases in which the equity interest in subsidiaries and investee companies held by Hengda, as the party subject to enforcement, were frozen.

China Evergrande also disclosed on Wednesday that as of the end of September, Hengda had completed the disposal of a total of 75 real estate projects through equity transfer, transfer of land and construction in progress, trust, nominee holding, etc.

In a September update, China Evergrande said that as of the end of August, Hengda had a total of 1,946 pending litigation cases that involved more than RMB 30 million each, with the total amount involved coming to roughly RMB 449.298 billion.

As previously reported, as of the end of August, the subsidiary’s unpaid debts had amounted to RMB 278.532 billion.

In an August update, China Evergrande noted that as of the end of July, Hengda had a total of 1,931 pending litigation cases which involved more than RMB 30 million each, with the total amount involved of about RMB 437.743 billion.

As of the end of July, the subsidiary’s unpaid debts due had amounted to RMB 277.501 billion.

China Evergrande is based in Shenzhen, China. The company filed Chapter 15 bankruptcy on Aug. 17 in the U.S. Bankruptcy Court for the Southern District of New York. The case number is 23-11332.

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