Debt-laden property developer China Evergrande Group said on Tuesday its unit received a notice of enforcement for unrecoverable funds from Shengjing Bank, reports Reuters. The bank said it failed to recover funds totaling RMB 32.595 billion ($4.48 billion), which was provided to the unit from 2020 to 2021, according to Evergrande.
In early September, state-owned companies of the Chinese northestern city of Shenyang bought Evergrande’s shareholding in Shengjing Bank in an auction for RMB 7.3 billion. The Evergrande unit’s 30.99% stake in Xinjiang Guanghui Industry Investment Group, which it had pledged to the bank has now been enforced, the notice said.
Evergrande, which has about $300 billion in debt, said the pledged equity interest has not been auctioned or sold to a third party.