Two more vendors say payments from Evergrande are late



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HONG KONG (Reuters) – Advertising firm Leo Group said it is asking a Chinese court to freeze 356 million yuan ($ 55.06 million) of Evergrande Group’s assets for late payments, becoming thus the last supplier to sue the indebted real estate developer.

Leo’s lawsuit, which was leaked in a securities filing Monday night, comes after Huaibei Mining Holdings said last week that its construction unit is suing Evergrande for 400 million yuan in overdue fees.

And Langfang Development said last week that a court ordered Evergrande’s shares in the company to be frozen for three years following a ruling on a lawsuit between Evergrande and an investment firm.

Concerns about the financial health of the Chinese No.2 developer escalated after he said in June that he failed to pay certain commercial papers on time, and following the announcement last month that a court froze a $ 20 million bank deposit held by the developer at the behest of Guangfa. Bank.

Separately, Lets Holding, a construction research and development company, said in a securities filing over the weekend that it was not ruling out taking legal action to resolve overdue commercial paper in the city. ‘Evergrande of 33 million yuan.

Evergrande did not immediately respond to a request for comment on documents filed by Leo Group and Lets Holding.

Moody’s rating agency downgraded the Evergrande family of companies two notches to Caa1 from B2 on Monday, and senior unsecured ratings to Caa2 from B3 on Monday, following similar action by S&P and Fitch.

The downgrades reflect the company’s increased refinancing risk over the next 12 to 18 months given its weakened access to funding and liquidity position, Moody’s said.

Evergrande shares fell as much as 4.9% on Tuesday morning in Hong Kong, against a market-wide drop of 1.1%.



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