The company is asking the six to return the money. In addition, the real estate developer wants to impose six “heavy fines”.
The top six managers had invested money in their investment product Evergrande. The company maintains rules when it can be paid. However, the six were paid before that date. These early payments are likely related to Evergrande’s financial position.
Evergrande has been in serious financial problems for some time now. The company has more than 200 billion euros of debt, and earlier this week it became clear that creditors should not rely on interest payments this month. It has also been unable to dispose of assets for some time and has stalled many of the company’s projects, so that Evergrande cannot earn from it either.
Since the beginning of this year, the stock market value of Evergrande, which has more than 800 projects underway in 220 cities, has fallen by three-quarters. Investors fear bankruptcy, which may have an indirect impact on the Chinese real estate market. Like Evergrande, many companies finance new projects with advance payments to customers. This leaves a bit of a financial margin if things go wrong.
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