Debt-laden property developer China Evergrande Group said on Tuesday its unit received a notice of enforcement for unrecoverable funds from Shengjing Bank Co Ltd.
The bank said it failed to recover funds totalling 32.595 billion yuan ($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 7.3 billion yuan.
The Evergrande unit’s 30.99 per cent 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.
($1 = 7.2680 Chinese yuan renminbi)
