SHANGHAI – Six executives at the heavily indebted China Evergrande Group have returned funds from early repayments on the company’s investment products, the real estate group said on Saturday.
Evergrande, who is in a liquidity crisis with liabilities of over 300 billion US dollars as offshore bondholders fear an impending default, has not spoken publicly about the lack of interest payments to the bondholders.
EVERGRANDE creditors fear impending insolvency as concerns shake the sector
The withdrawal came earlier this year and all funds were repaid in full before Friday, the company said in a statement. It said it imposed a penalty and held the six accountable but did not provide details.
Between May 1 and September 7, the six executives withdrew 12 investment products early without identifying the executives or providing details on the type of products.
The company embodies China’s permissive era of borrowing and building. Uncertainty about its ability to meet funding commitments – equivalent to 2% of China’s gross domestic product – has rocked markets.
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The group has been hit by recent rating downgrades, with both S&P Global Ratings and Fitch Ratings warning of the risk of default.