Western debt investors consider legal action against Evergrande

China Evergrande is facing even greater pressure, with struggling Western investors considering legal action over a recently uncovered security pledge of more than $2 billion from unnamed banks.

A group of troubled US and UK investors are seriously considering taking action against Evergrande, according to a Financial Times report citing unnamed sources, over the recently uncovered commitment of more than $2 billion for ” third-party guarantees” with anonymous lenders.

The investors involved are Saba Capital, Redwood Capital Management and Ashmore.

Evergrande held a call with investors last night, but few details were released, the report added.

Seizure of $2 billion

The legal action review follows Tuesday’s revelation when Evergande said undisclosed lenders had seized 13.4 billion yuan ($2.1 billion) in deposits at its real estate services unit. , which had been pledged.

Bondholders say the surprise move unfairly takes cash away from the company that could have been used to pay down debts totaling more than $300 billion worldwide.

In January, a group of international bondholders hired law firm Harneys to “seriously consider enforcement action” against Evergrande for not engaging with them.

Carol M. Barragan