Chinese authorities have told Evergrande's billionaire founder to use his own money to pay down the company's $300 billion debt, Bloomberg reports

Bloomberg reported that Evergrande founder Hui Ka Yan was instructed by Beijing to pay Evergrande's debts using his personal funds.
According to Bloomberg Billionaire Index, Hui has a net worth of $7.6 billion.

Evergrande has a debt pile of $300 billion.

According to Bloomberg, Hui Ka Yan is being ordered by Chinese authorities to pay Evergrande's debts using his own money.

Bloomberg explained that the directive was issued because Evergrande missed the Sept. 23 deadline for paying an $84 million coupon on a dollar bond. Evergrande paid the coupon within the 30-day grace period.

Hui's luck alone will not be enough to save the debt-laden property developer.

Hui has a net worth of $7.6 billion according to the Bloomberg Billionaire Index. This is a small amount compared to Evergrande’s $300 billion debt pile at June 2012.

It is also not clear if Hui has enough cash to complete the mission. Bloomberg said that his wealth is largely derived by Evergrande shares and cash dividends.

Evergrande's debt problems have caused markets all over the globe to be shaken. Investors fear that Evergrande will spread its woes to other countries. This Friday, the developer is due to pay $45 million in interest.

Bloomberg said that Evergrande's bank accounts are being monitored by Chinese local governments to make sure the funds are not used to pay off creditors.

Hui didn't immediately respond to an Insider Request for Comment via Evergrande.

Business Insider has the original article.


Post a comment

Your email address will not be published.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