China‘s Evergrande Property Services Group said on Friday a Guangzhou city court has ordered its parent China Evergrande to repay pledge guarantees on deposit certificates totalling 13.4 billion yuan ($1.83 billion).
Evergrande Property began legal proceedings against its indebted parent early last year for using its deposits as collateral for pledge guarantees.
China Evergrande, the world’s most heavily indebted property developer with over $300 billion in liabilities, was ordered into liquidation by a Hong Kong court in January last year following its offshore debt default in late 2021.
Evergrande Property said in an exchange filing the judgement was subject to appeal, and the recovery of the amount was uncertain.
Reuters
