Cina Evergrande faces over 1,300 lawsuits totaling $45bn

Cina Evergrande faces over 1,300 lawsuits totaling $45bn


Property giant also reports over 150 asset freezes at local arms.

Debt-laden property major China Evergrande Group is facing 1,317 lawsuits with combined claims of about 312.4 billion yuan ($45.1 billion), the company said.

The company disclosed Tuesday an overview of pending litigation with claims of 30 million yuan or more as of the end of February. Many of the lawsuits are likely from builders and materials suppliers demanding payment.

Evergrande also revealed that as of the end of February, it had defaulted on debts totaling around 237 billion yuan, excluding domestic and foreign bonds, and was overdue in commercial paper totaling 247.9 billion yuan.

Additionally, as of the end of March, the company reported 154 cases of asset freezes at local affiliates.

Evergrande's aggressive capital-raising expansion strategy made it one of China's leading real estate developers in the 2000s. But its finances started to falter after Beijing began cracking down on the property sector in summer 2020 by restricting bank borrowing based on financial health.

The company decided to restructure by arranging a debt workout with local governments. Evergrande said this month that some of its creditors had signed on to a restructuring plan for its offshore debt.

Evergrande has made some progress in debt restructuring. But the developer needs significant investment to continue operations in its mainstay real estate business, and finding a new sponsor remains a challenge.