According to state-affiliated news site Yicai, the founder of China Evergrande Group, Hui Ka Yan has made use of his wealth to raise nearly $1 billion for the extremely indebted property developer China Evergrande Group.
The aggressive billionaire has been putting up shares and shedding personal assets from the 1st of July. Referring to unknown sources, last week Yicai reported he spent more than 7 billion yuan ($1.1 billion) in cash to aid Evergrande in improving its liquidity and keeping up with its day-to-day operations.
According to Yicai’s introduction page, the state-run Shanghai Media Group manages the website.
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No response was received when an email had been sent to Evergrande asking for a remark. The company has recorded over $300 billion of liabilities in total, however, recently, it has managed to hardly prevent default by making the payment of hundreds of millions of dollars as interests on multiple offshore notes just ahead of the due date.
It has been claimed by analysts that the payments are probably to come from the personal wealth of Hui. The billionaire is assumed to be under pressure by the government to make great on Evergrande’s financial liabilities and stay away from being held personally responsible.
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According to a forecast by Forbes, Hui still has a net worth of $10.7 billion. Since Evergrande’s initial public offering in 2009, cash dividends of $8 billion have been paid to him. The billionaire has indulged in luxury assets, which are continuously on target since creditors both at home and abroad are asking for repayment.
Hui is the owner of Event, a 197-foot superyacht as of now created in Hong Kong. According to data provider VesselsValue, the boat which he bought in 2003, has now worth $47.4 million.
Billionaire Provided Two Luxury Houses as Collateral
Meanwhile, he has provided two lavish houses as collateral in Hong Kong for a loan of $105 million, as reported by Bloomberg last week. For a combined $50 million, he has sold off his two private jets and is looking to sell a much bigger Airbus ACJ330 wide-body jet.
The VIP- the configured plane was bought for an amount of $220 million earlier a few years and last month, Forbes had reported that the same model has been utilized by heads of states for traveling. The billionaire, individually, has been dumping Evergrande’s stakes in subsidiaries.
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Last week, the property developer sold the entire stake of Evergrande in streaming service provider HengTen Networks Group for the sum of $274 million.
In the same week, its electric-car division, China Evergrande New Energy Vehicle Group, raised a sum of $347 million through a top-up placement that diminished Evergrande’s stake from 62.6% to 57.4%.