Inter Milan boss and Suning founder’s son Steven Zhang liable for US$255 million in landmark verdict against China’s keepwell undertakings
- Zhang Kangyang, also known as Steven, was sued by offshore creditors last August to recover US$255 million of loans and a defaulted bond that bears his guarantee
- The High Court of Hong Kong found for the creditors’ representative China Construction Bank, rejecting Zhang’s defence of forgery and ignorance
The scion of one of China’s largest e-commerce retailers and the president of the Italian football club Inter Milan has lost a court case in Hong Kong, making him liable for US$255 million (HK$2 billion) of debt.
Zhang Kangyang, also known as Steven, was sued by creditors last August to recover US$255 million of loans and a defaulted bond that he guaranteed, pledges that he subsequently reneged, citing forgery and ignorance. The Hong Kong High Court found for the creditors’ representative China Construction Bank (Asia) Corporation Limited, according to a verdict delivered on Tuesday.
“There is little room for doubt that [Zhang] did participate in the original financing of the project, and for which he had given his personal guarantees,” the High Court judge Hon. Anthony Chan ruled in his verdict. “Considered in such light, Zhang’s attempt to distance himself with the refinancing has little merit.”
The verdict puts the creditors in the position to claim the US$255 million owed by Zhang, as well as interest and costs, the plaintiff’s lawyer said.
Separately, China Construction Bank (Asia) filed a civil lawsuit in Milan asking the local court to invalidate a February 2019 waiver of pay for Zhang at the football club, which would help creditors in their bid to recover their assets.