By Tyler Durden
One day after China made it clear that it will require a pound of flesh from Evergrande Chairman Hui Ka Yan when it demanded that he tap his personal wealth to pay down the insolvent property developer’s debt (something which he can’t do as his entire fortune is currently around $7 billion, a far cry from the company’s $300 billion in liabilities) we learn that an associate of Yan’s recently put up a luxury house owned by the chairman in Hong Kong for loan collateral as the billionaire and his property empire face an escalating debt crisis.
According to documents from the city’s Land Registry, a property on Hong Kong Island’s Black’s Link trail, known for its wealthy communities and expansive views, was pledged Oct. 19 to the local branch of China Construction Bank in exchange for a HK$300 million loan. Market observers estimate the property’s value at HK$700 million ($90 million).
According to Caixin, the property was pledged under pressure from Evergrande’s creditors, which demanded additional security for the company’s private equity financing. As everyone is aware by now, Evergrande is struggling to repay debts amounting more than $300 billion, some of which it has defaulted on.
