Evergrande Subsidiary Assets Frozen by Local Court

A Chinese court has ordered the freezing of US $101 million in assets held by a subsidiary of property developer China Evergrande Group due to missed payments for construction work, according to a filing by contractor Shanghai Construction Group.

State-owned Shanghai Construction, which sued the Evergrande unit in the southwestern city of Chengdu in December for overdue construction fees, cited the Guangzhou Intermediate People’s Court ruling that the assets to be frozen would include bank deposits and real estate.

Many suppliers and contractors have launched legal actions against Evergrande over missed or late payments. 

Individuals who have purchased properties being developed by Evergrande also filed a lawsuit against the developer.

Authorities said the Guangzhou Intermediate People’s Court has been handling all lawsuits against the developer across the country since August to oversee and manage Evergrandes debt restructuring.

Evergrande Chairman Hui Ka Yan told an internal meeting earlier this month the firm needed to fully restore construction work across China in February to deliver 600,000 apartments in 2022. 

Hui Ka Yan added that Evergrande would clear its debt by fully restoring construction and sales activities, not by selling off assets cheaply.

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