China Evergrande
China Evergrande removes top executives
Beijing: China Evergrande, the embattled Chinese property developer, recently announced that its chief executive had resigned.
The company is struggling to manage its crushing $300 billion in debt.
In an announcement, the company said the chief executive, Xia Haijun, had resigned over his involvement in a plan to funnel $2 billion into Evergrande’s coffers from one of its subsidiaries, reports The New York Times.
A preliminary investigation found that the funds, belonging to Evergrande Property Services, had been used as collateral to guarantee a series of loans, money that was then diverted to Evergrande through a third party, the company said.
China Evergrande said it had asked Xia and Pan Darong, its chief financial officer, to resign over their involvement in the plan, along with one other executive.
Evergrande did not specify what role the executives had played, but it said that Xia and Pan had “no disagreement” with the board of directors over the resignations.
The company said it will soon announce a restructuring plan .
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