:Evergrande Property Services said on Friday its units have started legal proceedings against parent China Evergrande to recover 11.4 billion yuan ($1.59 billion) of pledge guarantees on deposit certificates.
The lawsuit, which also names China Evergrande’s other subsidiaries including Hengda Real Estate, comes ahead of a high-profile case on Monday where a judge will decide whether to liquidate the embattled Chinese property developer.
In late November, Jinbi Property Management, another unit of Evergrande Property Services, had also commenced proceedings for the recovery of about 2 billion yuan deposit certificate pledge guarantees.
In February last year, parent Evergrande had said it was in talks with Evergrande Property Services to repay the funds.
In July 2022, the company revealed that deposits of about 13.4 billion yuan ($1.96 billion) belonging to the property unit were used as collateral for pledge guarantees by the group.
Evergrande Property Services has received notices from the Guangzhou Intermediate People’s Court of Guangdong Province on formally accepting the filing of the cases, it said on Friday.
($1 = 7.1741 Chinese yuan renminbi)
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