Centaline, Midland sue debt-laden Evergrande over unpaid commissions
Embattled Chinese developer owes the agencies millions in commissions.
Two Hong Kong property agencies have sued the debt-laden developer, China Evergrande Group, over millions of unpaid commissions.
A report from Reuters stated that Centaline and Midland Holdings filed lawsuits against the Chinese real-estate developer over unpaid commission worth HK$3.1m and HK$43.45m, respectively.
Centaline’s claim was filed in September in Hong Kong.
Centaline China is also seeking to claim hundreds of millions of yuan from troubled Chinese property giants. It filed a suit in Guangzhou court in southern China.
The debt crisis surrounding Evergrande surfaced on 24 September after the company’s letter to Guangdong’s provincial government about cash flow concerns made rounds on social media.
According to Bloomberg, Evergrande warned officials, through the letter dated August, that its payments due for January 2021 could cause a liquidity crisis.
Whilst the letter was dismissed by Evergrande, it still caused a tumble in the developer's stock and bonds.
China Evergrande Group’s total liabilities have already ballooned to US$300b.