Evergrande says six executives repaid early product buyback funds

SHANGHAI, Oct. 9 (Reuters) – Six executives from the heavily indebted China Evergrande group (3333.HK) have repaid funds from prepayments of the company’s investment products, the real estate group said on Saturday.

Evergrande, in a liquidity crunch with more than $ 300 billion in liabilities as offshore bondholders fear impending default, has not spoken publicly about the lack of recent interest payments to bondholders.

The buyback took place earlier this year and all funds were returned in full by Friday, the company said in a statement. He said he imposed sanctions and held the six responsible, but gave no details.

Between May 1 and September 7, the six executives proceeded with the early repayment of 12 investment products without identifying the executives or giving details of the nature of the products. Read more

The company embodied China’s freewheeling era in borrowing and construction. Uncertainty over its ability to meet its financing obligations – equal to 2% of China’s gross domestic product – has rocked markets. Read more

The group has been hit by recent downgrades, with S&P Global Ratings and Fitch Ratings warning of the risk of default. Read more

Engen Tham report in Shanghai

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