A court in Guangzhou, China ordered China Evergrande (HKG:3333) to pay back pledge guarantees of 13.4 billion yuan owed by Evergrande Property Services (HKG:6666) subsidiaries to banks, according to a Friday filing with the Hong Kong Exchange.
The decision stems from a lawsuit Evergrande Property Services filed against China Evergrande late in January 2024 for allegedly using deposits by Evergrande Property subsidiaries as collateral for pledge guarantees, with amounts of as high as 2.7 billion yuan.
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