Evergrande, the debt-ridden Chinese property company, has sold assets worth $1.1billion including art and Hong Kong flats to its boss. This was in response to fears that Evergrande’s collapse might lead to a financial crisis worldwide.
Hui Ka Yan (63), a Chinese official, told Hui Ka Yan that he would use his personal assets to pay the bondholders. Two people who have knowledge of the matter spoke to Reuters last month.
Evergrande is trying to fulfill its debt obligations. Hui Ka Yan released funds from luxury assets to help Evergrande, China Business News reported on Tuesday.
Evergrande’s difficulties in paying its bond payments have caused panic in markets. This has left creditors, investors and suppliers reeling.
Since the beginning July, Xu has been injecting cash into the company.
Chinese authorities ordered Hui Ka Yan, Chairman of Developer China Evergrande Group in 2017 (file photo), to pay his bondholders with some of his personal assets.
The paper said that it was used to “maintain basic operations” of Evergrande’s vast business empire. This included paying salaries and interest to staff, as well as cash owed by Evergrande’s wealth investors.
This money has been used for the completion of property projects in China.
“Xu Jiayin” was the headline.
Guo Hui was a cleaning service owner owing Evergrande over 18 million Yuan ($2.8 Million). He had to dispose of his Porsche Cayenne as well as an apartment in order to pay off debts and raise funds.
Guo said to Reuters, “He should sell his stuff.” Guo said that he had no other choice after being forced by authorities to do so.
According to Hong Kong’s Land Registry, Hui pledged one his Hong Kong homes of approximately 5,000 feet, in The Peak. This is Hong Kong’s most exclusive residential area with breathtaking views of the skyscrapers.
According to Reuters, the property’s value is approximately HK$800m ($103m). A local agent stated that the pledge was to bring about HK$300million in order to repay an Evergrande bond.
According to the Land Registry, the tycoon was Asia’s richest man in 2017. He pledged to Orix Asia Capital Ltd two additional luxury homes in the same development. The total raised by the tycoon was HK$821million, according to HK01 local media.
According to the agent, one of the properties was worth HK$800million, while the other is larger and, according to HK01, is worth HK$1 trillion.
Pictured is Villa del Mare in Australia, which was owned by Developer China Evergrande Group Hui Ka Yan. To pay the massive debts of property company, he was told to dispose off his assets.
Evergrande, Hui, and Evergrande declined to comment on The Peak properties.
China’s State Council Information Office didn’t immediately reply to our request for comment.
Hui, who was brought up in a village by his grandmother, founded Evergrande in Guangzhou in 1996. It supplies affordable homes and makes a lot of money.
Since July 1, Xu has been injecting money into the business.
According to one source, the man developed a passion in calligraphy, art, and Koicarp. This fish was considered lucky and good fortune.
Evergrande, according to the source has been selling art and calligraphy under Hui’s orders to raise new capital. Due to the sensitive nature of the matter, the source refused to identify themselves.
Reuters was unable to determine the amount of money raised through the sales of art or the purpose for which it was used.
Evergrande has not responded to our request for comments regarding the art sales.
Another source claimed Evergrande had sold two Gulfstream jets over the past few weeks.
The Wall Street Journal reports that Evergrande sold two private jets to American investors earlier in the month.
According to Chinese media reports, Hui is also the owner of a yacht measuring 60 meters called “Event” that’s worth $60 million. He also has a private Airbus plane.
Reuters was unable to independently confirm Hui’s ownership of the yacht and private plane.
Evergrande and Hui did not reply to inquiries regarding Hui’s aircraft and yacht, or other assets.
Hui’s networth has plummeted from approximately $45 Billion in 2017 to around $11.3 Billion over the years. However, the Hurun China Rich List 2020, which was released last month, still shows that he is worth an estimated $11.3B.
Even though he is attempting to sell some personal assets, any proceeds are insignificant compared to Evergrande’s liabilities exceeding $300 billion. This amount roughly equals the South African gross domestic product.
Evergrande avoided a default last week by making a late bond payment. The next deadline for Evergrande is December 28th. Coupon payments of more than $255 million are due.