Evergrande to Miss Earnings Deadline, Says Lenders Have Seized $2 Billion in Cash

Embattled real estate giant China Evergrande Group, whose total debts are estimated to surpass $300 billion, has announced that it will not meet the March 31 deadline for publishing its audited 2021 financial results. The news comes as one of its units also said on March 22 that unnamed creditors have seized $2 billion of the company’s bank deposits held as collateral on its loans. In a stock exchange filing, Evergrande said that “drastic changes” to the company’s operating environment had led its auditor to put a number of additional audit procedures in place. Together with the impact of COVID-19, the firm claimed, these revisions to the audit requirements have made Evergrande unable to complete the procedures by the deadline. Evergrande, with over $300 billion in liabilities, defaulted on some overseas bond payments in December and has struggled to repay suppliers and creditors and complete projects and homes. In a separate …

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