- A group of distressed debt investors in the U.S. and U.K. are prepared to take action against Evergrande Group (OTC:EVGPY), the Financial Times reports.
- The investors included Saba Capital, Redwood Capital Management, and Ashmore.
- The action came after the indebted property developer admitted that undisclosed lenders took $2.1 billion in cash from its Evergrande Property Services Group subsidiary pledged as security for "third party guarantees."
- Also Read: Is The Evergrande Crisis Over?
- The revelation could trigger a legal battle between the Chinese developer and significant international investors who alleged unfair removal of cash that could have repaid the company's bonds.
- The investors wanted to know how Evergrande looked to recover the money and whether the board of the property services subsidiary approved its use as a pledge.
- Evergrande's default, which began with missed payments in September, was characterized by a lack of disclosure, leaving the international investors clueless.
- Photo by Tumisu via Pixabay
