We’ve been reporting on China Evergrande Group’s financial crisis for months. The company is the largest debtor in world history to go bankrupt.
One US global management company, Oaktree Capital has somehow been able to seize two properties of Evergrande’s in an effort to recover the $1 billion that they are owed by the failing company.
Los Angeles-based Oaktree Capital Management has seized a second Evergrande property in China as part of an unprecedented push to recover $1 billion in unpaid debt.
Oaktree has seized a massive “Venice” apartment complex on the Yellow Sea coast near Shanghai that had defaulted on a $400-million secured loan, according to the Financial Times.
This came after Oaktree, which manages $166 billion in assets, seized a large plot of land in Hong Kong called “Project Castle,” where China Evergrande Group had hoped to build a Versailles-like mansion. The loan to that project came to around $600 million.
Oaktree is a distressed debt specialist, and the firm’s aggressive moves to foreclose on two secured loans represents a rare intrusion into a domestic crisis in China–this one caused by the world’s biggest collapse of a property developer.
For months we reported on Evergrande failing being a symptom of a bigger issue for China.
China’s Economy is Not in Good Shape – Evergrande’s Inability to Make Payments Is a Symptom
Below is a video on the latest activities related to Evergrande.
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