China has detained an executive of Evergrande’s vehicle unit, threatening to further complicate the outlook for the restructuring of the world’s most indebted property group, reports the Financial Times. Liu Yongzhuo, an executive director of China Evergrande New Energy Vehicle Group, was detained on Monday over “suspicion of illegal crimes,” the company said in a filing to the Hong Kong stock exchange.
The disclosure of Liu’s detention comes as Evergrande is due to face a hearing in a Hong Kong court over demands from offshore bond holders to wind up the company on January 29.
In an earlier restructuring plan rebuffed by investors, Evergrande offered to issue new bonds and swap some of its offshore debt with stakes in its EV unit and Hong Kong-listed affiliate Evergrande Property Services Group.