Evergrande’s bondholders have threatened to sue the developer on the latest news of being blindsided by lenders’ claim on its subsidiary. Evergrande said that lenders to its property services unit claimed more than RMB 13.4bn ($2.2bn) of its deposits used as security for third party guarantees, previously undisclosed. FT cites sources reporting that investors in the US and UK including Saba Capital, Redwood Capital Management and Ashmore met and directed lawyers to decide on taking action. A source said, ““The atmosphere in the room is one of boiling blood”, and that legal action was inevitable. Bondholders said that the mysterious claim move unfairly removes cash that could have been used to repay bonds. Evergrande’s property services group is also investigating the event.
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