Chinese authorities have told Evergrande’s billionaire founder to use his own money to pay down the company’s $300 billion debt, Bloomberg reports

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  • Beijing has instructed Evergrande’s founder, Hui Ka Yan, to pay the company’s debt using his personal funds, Bloomberg reported.

  • Hui’s net worth is about $7.6 billion, according to Bloomberg Billionaire’s Index.

  • Evergrande’s debt pile is $300 billion.

Authorities in China have told Evergrande’s billionaire founder, Hui Ka Yan, to use his own money to pay the company’s debt, Bloomberg reported citing people familiar with the matter.

The directive was issued after the real estate behemoth missed an initial Sept. 23 deadline to pay an $84 million coupon on a dollar bond, Bloomberg added. Evergrande later paid the coupon during the note’s 30-day grace period.

Hui’s fortune alone is unlikely to be enough to rescue the debt-laden property developer.

According to the Bloomberg Billionaire Index, Hui’s net worth is around $7.6 billion – that’s small change compared to Evergrande’s $300 billion debt pile as of June this year.

It’s also unclear if Hui’s personal stash is liquid enough for the mission. His wealth is largely derived from his shares in Evergrande and their cash dividends, Bloomberg added.

Markets the world over have been roiled by Evergrande’s debt woes as investors fear contagion across the world economy. The developer has an interest payment worth $45 million due this Friday.

But local governments China are keeping tabs on Evergrande’s bank accounts to ensure the company’s funds are used to complete housing projects under construction, rather than being used to pay creditors, Bloomberg added.

Hui did not immediately respond to an Insider request for comment via Evergrande.

Read the original article on Business Insider

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