Evergrande Owned By Conglomerate Hui Ka Yan Sells Land In Rural Hong Kong For IDR 7.4 Trillion

The owner of Evergrande, Hui Ka Yan Conglomerate (Photo: Doc. Forbes)

JAKARTA - The Evergrande Group's efforts to solve the problem of debt bondage of IDR 4.000 trillion that they are currently experiencing continues. This time the conglomerate owned by tycoon Hui Ka Yan will release land in an undeveloped rural district of Hong Kong.

Quoting Reuters, Monday, January 31, the land in the Yuen Long area, Hong Kong will be used as debt security. The assets were charged as collateral for a debt of 520 million or around IDR 7.4 trillion that was proposed by Evergrande in January 2021.

This effort was disclosed by a source who did not want to be named. He said the creditor who got the collateral for the land assets was Oaktree Capital from the United States.

"The company is seeking legal advice to protect the company's legal rights. At the same time, the company is in active discussion with lenders to resolve the issue with the aim of reaching a resolution so as to maximize returns to the group," Evergrande wrote in a statement.

Evergrande's move to turn Hong Kong's land assets into debt guarantees is considered by the company not to have a material impact on the company's operations or financial position. The move will also not affect the group's ongoing debt restructuring.