(Nov 21): Liquidators of China Evergrande Group are asking a Hong Kong court to freeze all assets of the former chief executive officer’s ex-wife, He Kun, as part of their efforts to recover US$6 billion ($7.8 billion) in funds for creditors.
There’s already an injunction on some of He Kun’s assets, including property and motor vehicles valued at an estimated US$24 million, but liquidators are looking to extend that to cover her liquid assets as well.
During a court hearing on Friday, the liquidators’ lawyer argued that ex-CEO Xia Haijun is the only source of He Kun’s wealth. “Xia has continued to transfer huge amounts of money” to his ex-wife since the two separated, and her lifestyle is dependent on those funds, the lawyer told the court.
The lawyer also said that the couple’s 2023 divorce was “just a device” to hide Xia Haijun’s assets.
Nearly two years after Evergrande was liquidated in one of the world’s biggest corporate implosions, the quest to recoup assets to repay creditors is still dragging on. Liquidators are increasingly pursuing the wealth of key defendants, such as Xia Haijun and He Kun, but so far haven’t been able to return any funds to creditors.
He Kun has about US$15 million in liquid assets, including cash and securities, her lawyer said, but argued that the current injunction shouldn’t be extended to those funds. He Kun is also seeking some leeway under the current freeze that would allow her to be able to rent out and maintain some of her properties.
See also: Fresh orange juice must be fresh
Xia Haijun, meanwhile, has almost US$500 million in assets from his previous salary, shares and investments in Evergrande, according to data compiled by Bloomberg.
In September, Hong Kong High Court judge Russell Coleman said receivers would be appointed for Xia Haijun’s assets, but that didn’t cover those of his ex-wife. Liquidators are still seeking the appointment of receivers for He Kun’s assets that are tied to her ex-husband, the court was told Friday.
Coleman said Friday that he would try to hand down a decision by the end of the year.
Uploaded by Magessan Varatharaja
