China Evergrande’s struggle to pay its debts produced more drama this past week as lenders to the world’s most indebted developer took steps to seize its Hong Kong headquarters.
The unidentified lenders to Shenzhen-based Evergrande have appointed a receiver to sell the group’s 26-storey Wan Chai office tower, according to market sources who spoke with Mingtiandi.
The office block in Hong Kong’s Wan Chai district, which Evergrande purchased for a record $1.61 billion in 2015, had been pledged to a group of lenders led by China CITIC Bank International in return for a loan.
Evergrande’s creditors have hired US restructuring specialist Alvarez & Marsal to liquidate the property as efforts by the developer to market the asset at around HK$9 billion ($1.15 billion) have struggled to reach a deal.
