NEVS sticks to plans - Evergrande founder should pay for debts
Life is difficult for Chinese billionaires in these times. Hui Ka Yan, founder of the Evergrande Group and at least temporarily one of the richest Chinese, should pay. With parts of his private fortune, he should now be responsible for the company's liabilities. That is the opinion of official bodies. However, wealth has shrunk considerably in recent months. In the league of the richest, Hui Ka Yan is no longer at the forefront.
Shrinking private wealth
The Evergrande founder maintains a decadent lifestyle, not just for communist living conditions. A 60-meter yacht and an Airbus are guaranteed, and his house in the hills above Hong Kong is valued at US $ 100 million. In its prime, private wealth was valued at US $ 42 billion. Meanwhile it has melted to 7,8 billion US $, Hui Ka Yan suddenly finds himself only on Rang 360 the billionaires again.
The good times for the super-rich in China seem to be over. Politics remembers its roots and for a few months now has been claiming prosperity for everyone instead of excessive wealth for a few. As if that weren't enough of a concern, official bodies demand the use of private assets repayment of the liabilities of the Evergrande Group. Private wealth would be, if Hui were to comply, but just a drop in the ocean of debt estimated at around US$300 billion. Hui Ka Yan has not yet responded to this request, which is unusual even by Chinese standards. Ignoring the "desires" will be difficult.
New development "means nothing."
Ignoring, on the other hand, is at the top of the list in Trollhättan. Evergrande's announcement to focus on the electric car business in the future the konzentrier wanting was positive for the share price (HK 0708), which has been following an upward trend since then. In Trollhättan she met with indifference.
NEVS CEO Stefan Tilk sprach even that the change of course would “mean no”. At least a notable position towards the owner of the company.
NEVS is still pursuing the plan to part ways with Evergrande and is still in talks with potential investors and new owners. The company does not give any details, and the schedule is also open.
2 thoughts on "NEVS sticks to plans - Evergrande founder should pay for debts"
... as already written, investing private money in the company? Real estate people are very reluctant to do that. Lets see how it goes on!
Finding a new prospect for an almost empty site will not be easy. And even more difficult because you know that Evergrande is very much in debt and you only want to sell it for a lot of money. In my opinion, NEVS can only dream that this could be a reality.
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