China Evergrande’s Hengda continues to rack up lawsuits, unpaid debt

By William Gullotti

Buffalo, N.Y., Dec. 29 – China Evergrande Group issued an update on Friday relating to subsidiary Hengda Real Estate Group Co., Ltd.’s involvement in material litigation and ongoing failure to repay debts due.

As of the end of November, Hengda had a total of 2,053 pending litigation cases that involved more than RMB 30 million each, with the total amount involved totaling RMB 490.069 billion.

Also as of the end of November, the subsidiary’s unpaid debts amounted to RMB 316.391 billion.

The company additionally reported that, as of the end of November, overdue commercial bills totaled RMB 205.537 billion.

During November, there were 101 new enforcement cases against Hengda involving a total amount of RMB 13.048 billion.

During that same month, there were 54 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 Friday that, as of the end of November, Hengda had completed the disposal of a total of 80 real estate projects through equity transfer, transfer of land and construction in progress, trust, nominee holding, etc.

Prior updates

In the company’s November update, Hengda had a total of 2,002 pending litigation cases that involved more than RMB 30 million each, with the total amount involved totaling RMB 470.755 billion.

Also as of the end of October, the subsidiary’s unpaid debts amounted to RMB 301.363 billion and overdue commercial bills totaled RMB 205.933 billion.

During October, there were 100 new enforcement cases against Hengda involving a total amount of RMB 6.617 billion.

Earlier, China Evergrande said that 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.

In September, China Evergrande announced 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 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 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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