China Evergrande CEO resigns after loan review
Evergrande, which did not create the third group that facilitated the loans, said the funds were used for “normal operations” but did not elaborate.
China Evergrande said it asked Mr. Xia and Pan Darong, its chief financial officer, to resign over their involvement in the plan, as well as another government. Evergrande did not specify what function the executives served, but said Mr. Xia and Mr. Pan had “no disagreement” with the board over the resignations.
Evergrande said it would announce a restructuring plan later this month. Once China’s largest real estate developer, the agency has struggled to repay more than $300 billion to collectors after the government pressured indebted real estate companies to curb borrowing, hampering the means of company to pay suppliers and complete tasks. The company defaulted in December.
The debt problems that plague Evergrande have spread to other overstretched property builders in China, fueling concerns about a few potential property disasters that would threaten an already fragile economic system. Evergrande said it named Siu Shawn, the company’s chief executive, to take over as chief executive. He appointed Qian Cheng as his new chief monetary officer.