Property developer China Evergrande Group said on Friday it has received an enforcement notice from the court in relation to arbitral proceedings against its unit and executive director by Hexin Hengju (Shenzhen) Investment Holding Center, reports Reuters. The group said the enforcement notice requires it to pay compensation of about RMB 770 million ($111.40 million) to the claimant, among other required payments.
The proceedings involve deals entered into by the claimant, the company’s unit Guangzhou Kailong Real Estate and its executive director Hui Ka Yan between December 2016 and November 2020.
Under the deals, the claimant injected 5 billion yuan into Hengda Real Estate, another unit of China Evergrande, to buy a 1.6% stake. The deals later fell through as certain obligations were not fulfilled.