Tue. Oct 26th, 2021


© Reuters. FILE PHOTO: A China Evergrande Group logo is shown at a press conference on the real estate developer’s annual results in Hong Kong, China, on March 28, 2017. REUTERS / Bobby Yip / File Photo

HONG KONG (Reuters) – Advertising firm Leo Group said it is asking a Chinese court to freeze 356 million yuan ($ 55.06 million) in assets of the Evergrande group for overdue payments, the latest supplier to sued the real estate developer in debt.

Leo’s lawsuit revealed in a securities filing on Monday afternoon comes after Huaibei Mining Holdings said last week that its construction unit is suing Evergrande for an amount of 400 million yuan overdue.

And Langfang Development said last week a court ordered the shares of the Evergrande company to be frozen for three years following the resolution of a lawsuit between Evergrande and an investment company.

Concerns over the financial health of China’s No. 2 developer intensified after he said in June he was not paying any commercial paper on time and, in last month’s news, a court froze a $ 20 million bank deposit of dollars that the developer had at the request of Guangfa Bank.

Separately, Lets Holding, a construction R&D firm, said in a securities presentation over the weekend that it does not rule out taking legal action to resolve the 33 million yuan trade document of the defunct Evergrande.

Evergrande did not immediately respond to a request for comment on Leo Group and Lets Holding’s submissions.

Moody’s rating agency (NYSE 🙂 downgraded Evergrande’s two-oscillation corporate rating (CFR) to B2’s Caa1 on Monday, and B3’s senior unsecured rating to B3 after an action similar to S&P and Fitch above.

The rebates reflect the company’s highest risk of refinancing in the next 12-18 months, given its weakness in access to finance and its liquidity position, Moody’s said.

Shares of Evergrande fell to 4.9% on Tuesday morning in Hong Kong, compared to a 1.1% decline in the broader market.

($ 1 = $ 6,4655)

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