Advertisement
Evergrande resolves debt dispute with Guangfa Bank after Hong Kong lenders withdrew mortgage loans to its apartment buyers
- Guangfa won a court order freezing US$20 million of Evergrande’s assets in China this month
- Dispute wiped US$2.7 billion off Evergrande’s market capitalisation on Monday
Reading Time:2 minutes
Why you can trust SCMP
Heavily indebted developer China Evergrande said on Thursday that it resolved a dispute with a bank creditor that led to 132 million yuan (US$20 million) in its assets being frozen this month.
The Shenzhen-based company said it maintained a “cooperative relationship” with China Guangfa Bank and had resolved its dispute with the bank following additional communication.
“The two parties will continue to consolidate and deepen their business relationship in the future,” Evergrande said in a statement on its website.
Advertisement
Evergrande, the world’s most indebted developer, said on Monday that it was considering “legal proceedings” against Guangfa Bank after the lender obtained a court order in eastern China earlier this month freezing some of its assets.
01:49
10-storey residential building in China constructed in a day
10-storey residential building in China constructed in a day
The developer’s shares crashed in Hong Kong on Monday, falling 16 per cent and wiping US$2.7 billion off its market capitalisation after the dispute became public and increased concerns about its financial health.
Advertisement
Advertisement
Select Voice
Select Speed
1.00x