State-owned companies in the Chinese northestern city of Shenyang bought China Evergrande Group’s shareholding in Shengjing Bank in an auction for RMB 7.3 billion ($1.05 billion), Alibaba’s auction platform showed on Wednesday, reports Reuters. In July, Evergrande, the world’s most indebted property developer, said its unit, Evergrande Nanchang, had been ordered to pay an unamed guarantor RMB 7.3 billion for failing to honor debt obligations.
The unit has provided counter-guarantees in the form of a pledge of a total of 1.3 billion shares that it held in Shenyang-based Shengjing Bank, the firm said at the time.
According to the auction platform, the 1.3 billion shares in Shengjing Bank owned by Evergrande Nanchang were auctioned by Shenyang Intermediate People’s Court at an opening bidding price of RMB 7.3 billion.