Hong Kong property companies suing Evergrande to get better commissions

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HONG KONG, Oct 6 (Reuters) – Two Hong Kong property companies are suing closely indebted China Evergrande Group (3333.HK) over unpaid commissions, in keeping with a court docket submitting and media experiences, piling stress on the developer because it scrambles to boost funds and avert a collapse.

Centaline filed a go well with towards Evergrande in September to get better HK$3.1 million ($398,196) in overdue commissions, a court docket submitting confirmed, whereas the South China Morning Post newspaper reported Midland Holdings (1200.HK) is claiming unpaid fee of HK$43.45 million for 2 developments in Hong Kong.

An govt at Centaline China instructed Reuters they’ve additionally filed a go well with towards Evergrande in a Guangzhou court docket in southern China, searching for to assert lots of of hundreds of thousands of yuan it says it’s due.

Centaline confirmed to Reuters it filed a declare in Hong Kong final month, however declined to remark additional. Midland declined to remark, saying the case was going by way of authorized procedures. Evergrande didn’t instantly reply to a request for remark.

Hong Kong’s publicity to debt-laden developer China Evergrande is “very minimal” at 0.05%, or HK$14 billion ($1.79 billion) of banking property and won’t trigger any systemic dangers, the newspaper reported on Sunday, citing the town’s Financial Secretary Paul Chan. learn extra

Evergrande has vowed to repay its suppliers and contractors in mainland China as quickly as doable, in some circumstances providing flats or different actual property property, as development at lots of its websites have halted due to delayed funds.

With liabilities of $305 billion, Evergrande has sparked issues its money crunch may unfold by way of China’s monetary system and reverberate globally, a fear that has eased with the Chinese central financial institution’s vow final week to guard homebuyers’ pursuits. learn extra

Growing worries about defaults at Chinese property builders triggered a rout of their shares and bonds on Tuesday with recent credit standing downgrades and uncertainty concerning the destiny of cash-strapped China Evergrande Group sapping investor sentiment. learn extra

Last month it missed coupon funds on two greenback bond tranches and is scrambling to promote property to pay collectors, prioritising reimbursement to onshore lenders in the previous couple of weeks.

($1 = 7.7851 Hong Kong {dollars})

Reporting by Donny Kwok and Clare Jim; Editing by Kim Coghill

The logo of China Evergrande is seen at outside China Evergrande Centre building in Hong Kong, China September 23, 2021. REUTERS/Tyrone Siu