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China Tells Evergrande Billionaire to Pay off His Insolvent Company's $300 Billion in Debt with His $8 Billion in Worth

Added 10-26-21 10:41:02am EST - “China tells Evergrande billionaire to pay off his company's debt with his own money.? However, it'll be difficult to pay off $300 billion in debt with $7.8 billion in worth. Chinese authorities reportedly told the billionaire behind…” - Thegatewaypundit.com

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Posted By TheNewsCommenter: From Thegatewaypundit.com: “China Tells Evergrande Billionaire to Pay off His Insolvent Company's $300 Billion in Debt with His $8 Billion in Worth”. Below is an excerpt from the article.

Beijing’s directive to the Evergrande founder came after his company missed an initial Sept 23 deadline for a coupon payment on a dollar bond, said the people, asking not to be identified discussing a private matter. Local governments across China are monitoring Evergrande’s bank accounts to ensure company cash is used to complete unfinished housing projects and not diverted to pay creditors, the people said.

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The demand that Hui tap his own fortune to pay Evergrande’s debt adds to signs that Beijing is reluctant to orchestrate a government rescue, even as the property giant’s crisis spreads to other developers and sours sentiment in the real estate market. Chinese President Xi Jinping has been cracking down on the billionaire class as part of his “common prosperity” campaign to reduce the country’s yawning wealth gap.

It is unclear whether Hui’s fortune is big and liquid enough to make a sizeable dent in Evergrande’s liabilities, which swelled to more than US$300 billion as of June. The developer’s dollar bonds are trading at deep discounts to par value as investors brace for what could be one of China’s largest-ever debt restructurings.

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