Heavily-indebted Chinese group Evergrande has announced that it and its liquidators are seeking $6 billion (€5.5 billion) in dividends and revenue from seven individuals or entities, including company founder Xu Jiayin.
Evergrande, which is emblematic of China’s property crisis, has been nourishing the scepticism that is rife in a previously lucrative industry, now shunned amid an economic slowdown and incomplete housing projects since 2020.
In a statement to the Hong Kong stock exchange, Evergrande stated it seeks to recoup among other things, dividends and remunerations totalling about $6 billion that it has paid out.
These claims aim to address the damage caused by alleged false statements about the company’s financial state from 2017 to 2020.
Apart from founder Xu Jiayin (also known under his Cantonese name Hui Ka Yan), they target his “wife or ex-wife” Ding Yumei, former CEO Xia Haijun, former CFO Pan Darong, and three other entities, according to the statement.
Unverified press reports from last year suggest that Xu Jiayin is under house arrest, a claim Evergrande has neither confirmed nor denied.
The liquidators have also obtained an order against Xu Jiayin, Ding Yulei, and Xia Haiyun, limiting further asset transfers, according to Monday’s statement.
Evergrande’s shares have been suspended since early 2024 and “will continue to be so until further notice.”
A Hong Kong court ordered the liquidation of the Evergrande group in January.
