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Chinese authorities have asked billionaire Evergrande founder to use his own money to pay off the company’s $ 300 billion debt, Bloomberg reports


  • Beijing has asked Evergrande founder Hui Ka Yan to pay off the company’s debt with his personal funds, Bloomberg reported.

  • Hui’s net worth is around $ 7.6 billion, according to the Bloomberg Billionaire Index.

  • Evergrande’s debt is $ 300 billion.

Chinese authorities have asked Evergrande founder and billionaire Hui Ka Yan to use his own money to pay off the company’s debt, Bloomberg reported citing people familiar with the matter.

The directive was issued after the real estate giant missed an initial September 23 deadline to pay an $ 84 million coupon on a dollar bond, Bloomberg added. Evergrande then paid for the coupon during the ticket’s 30-day grace period.

Hui’s fortune alone is unlikely to be enough to save the indebted real estate developer.

According to the Bloomberg Billionaire Index, Hui’s net worth is around $ 7.6 billion – that’s a small change from Evergrande’s $ 300 billion debt in June of this year.

It is also unclear whether Hui’s personal reserve is sufficiently liquid for the mission. Much of its wealth comes from its shares in Evergrande and their cash dividends, Bloomberg added.

Markets around the world have been shaken by Evergrande’s debt problems as investors fear contagion across the global economy. The developer has an interest payment worth $ 45 million due on Friday.

But Chinese local governments are monitoring Evergrande’s bank accounts to make sure company funds are used to complete housing projects under construction, rather than to pay creditors, Bloomberg added.

Hui did not immediately respond to an insider request for comment via Evergrande.

Read the original article on Business Insider

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