Evergrande is heavily in debt. Since the beginning of the year, the Group’s share price has fallen by three quarters.
(Photo: Reuters)
Beijing The ailing Chinese real estate giant Evergrande has admitted misconduct by several high-ranking managers. Six executives illegally redeemed several of the company’s investment products in advance.
Evergrande said on Saturday that the matter was being taken very seriously. The group is demanding a repayment of the redeemed funds from the managers and will impose “severe penalties”.
Normally, the company’s own investments are only allowed to be paid out after a certain holding time. The managers reportedly cashed the investments ahead of schedule, contrary to the planned payment schedule.
The misconduct of the executives takes place in the midst of an existence-threatening crisis of the highly indebted real estate giant based in Shenzhen. Evergrande’s debt is the equivalent of more than $ 300 billion. Since the beginning of the year, the Group’s share price has fallen by three quarters. Recently, several rating agencies had further downgraded Evergrande’s creditworthiness and warned of payment defaults.
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