A Chinese court ordered the freeze of RMB 640.4mn ($101mn) of Evergrande’s subsidiary’s assets after state-owned Shanghai Construction sued the unit in Chengdu for overdue construction fees. Last week, Shanghai Construction said that a local court in Guangzhou has frozen RMB 361.5mn ($57.1mn) of assets of a another Evergrande unit due to overdue payments. Evergrande, which has been facing a crisis since mid-2021 has seen several legal cases against it from several parties including its suppliers and contractors. Reuters reports that a growing number of construction and decoration companies are also writing off assets or issuing profit warnings due to the indebted developer’s woes.
Evergrande’s dollar bonds are trading at distressed levels of ~14 cents on the dollar.
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