China Evergrande Group announced on Monday ( Aug 5 ) that its liquidators were requesting$ 6 billion from seven defendants, including founder Hui Ka Yan, and that they had obtained injunctions against three of them.
The Hong Kong High Court ordered the country’s most beholden property developer to sell in January after failing to provide a detailed reform program for its$ 23 billion offshore debts, giving the company the order to do so with more than US$ 300 billion in liabilities.
The brokers claimed in a processing that they had started legal action against three companies linked to Hui and Ding as well as previous CEO Xia Haijun and past chief financial officer Pan Darong in late March.
The brokers claimed to have obtained injunctions barring Hui, Ding, and Xia from disposing of their global assets in accordance with different legal requirements.
The judge revoked the court’s security orders on August 2 regarding the prohibitions and the proceedings.
Joint trustees Edward Middleton and Tiffany Wong from Alvarez and Marsal stated that the proceedings are ongoing and that there is no assurance as to whether or not they will succeed or how much money the organization may eventually recover.
The brokers want to recover the$ 6 billion in income and pay Evergrande paid to the defendants based on allegedly erroneous financial claims for each of the financial years 2017 to 2020.
The China Securities Regulatory Commission discovered earlier this year that Hengda Real Estate, Evergrande’s main inland division, had overstated income by US$ 78 billion over the next two years, up until 2020.
The firm stated on Monday that it will hold onto the company’s stock until further notice.  ,