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China Evergrande Group’s CEO Xia Haijun and CFO Darong Pan have resigned after an investigation into Evergrande Property Services revealed that loans secured by the unit were redirected back to the group.
On Friday, Bloomberg reported that the company is investigating how banks unexpectedly seized $2 billion from its property services unit, one of the company’s key subsidiaries.
Evergrande said in a Friday regulatory filing that it received information about the executives’ involvement in arranging the bank deposits that had been pledged as collateral, and that the board asked Xia and Pan and another executive to resign.
Siu Shawn, an executive director at the company, will take over, as chief executive while vice president Qian Cheng has been named the chief financial officer, the company said.
Evergrande is currently undergoing a massive and complex debt restructuring, but has failed to reach a consensus with its international bondholders over the process.
Source - Bloomberg
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