Evergrande Founder Loses $200 Million Hong Kong Mansions to Creditor Amid Ongoing Financial Turmoil

Founder and Chairman Hui Ka Yan faces additional setbacks as two opulent mansions in Hong Kong’s prestigious The Peak neighborhood, collectively valued at $192 million, are seized by a creditor.

Financial Struggles Continue for Evergrande Founder

In the latest blow to Hui Ka Yan, founder and chairman of troubled Chinese property developer Evergrande, two luxurious mansions tied to him are being seized by a creditor. According to local media report, the properties, situated at 10C and 10E Black’s Link in Hong Kong, are valued at $192 million and will be formally seized in the coming days. This adds to the series of challenges faced by Hui, who saw a staggering 98% plunge in his fortune amid Evergrande’s debt crisis, leading to a loss of billionaire status.

Creditor Action and Seizure Details

The creditor action involves properties linked to Hui through Tan Haijun, an associate listed as a director of firms holding the two houses. The mansions, pledged to Orix Asia Capital for an HK$821 million loan in late 2021, underscore the ongoing financial strain on Evergrande’s founder. This incident follows the seizure of another Black’s Link mansion by China Construction Bank in November last year.

Evergrande’s Lingering Financial Woes

Evergrande, once China’s second-largest property developer, grapples with a liquidity crisis since 2021. Hui’s assets, including luxury homes, have faced increased scrutiny amid efforts to manage the company’s overwhelming debt. Evergrande filed for bankruptcy protection in the US in August, and the company’s share price continues to reflect the challenging financial landscape.

As Evergrande navigates its winding-up petition in Hong Kong and faces a crucial deadline for restructuring proposals, Hui Ka Yan’s financial challenges persist, impacting both his personal wealth and the fate of Evergrande in the tumultuous real estate market.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.