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(Original title: US$6 billion! Evergrande liquidator seeks remuneration and dividends from Xu Jiayin and others)

On the evening of August 5, ChinaEvergrande(03333.HK) announced that it is currently investigatingXu JiayinThe seven defendants, including , are seeking approximately $6 billion in dividends and fees previously paid.

The lawsuit took place on March 22 this year.Winding upThe court has filed a lawsuit against three defendants in the High Court of the Hong Kong Special Administrative Region, namely Xu Jiayin, former CEO of Evergrande,Xia Haijunand former CFO Darong Pan.

Since then, the above-mentioned lawsuit has gradually developed to include four other defendants, namely Xu Jiayin's spouse or former spouse Ding Yumei, and three entities related to Xu Jiayin and Ding Yumei.

In the lawsuit, Evergrande seeks to recover approximately US$6 billion (approximately RMB 42.7 billion) in dividends and remuneration paid to the seven defendants in connection with the financial statements for the fiscal years ending December 31, 2017 to December 31, 2020.

On behalf of Evergrande, the Evergrande liquidators obtained a number of injunctions based on their claims in the lawsuit, restricting Xu Jiayin, Ding Yumei and Xia Haijun from disposing of, selling or reducing the value of their global assets in excess of the relevant prescribed limits.

The injunctions were first issued in Hong Kong on June 24, 2024 against Hui Ka Yin and Xia Haijun, and gradually evolved to include Ding Yumei.

The writs and the Hong Kong injunction relating to the proceedings were previously subject to a confidentiality order issued by the High Court, which was lifted on August 2, 2024.

The liquidator said that the legal proceedings of the lawsuit are ongoing and there is uncertainty about the possibility of a successful claim and the amount that Evergrande may eventually recover. The liquidator will publish further announcements on the above matters in due course in accordance with the provisions of the Listing Rules.

Before this incident, Xu Jiayin, Xia Haijun and others had been punished or pursued for debts many times.

Public information shows that in September 2023, Xu Jiayin had been taken compulsory measures in accordance with the law for suspected illegal activities.

In March this year, Evergrande's domestic entity, Evergrande Real Estate, was accused of financial fraud and suspected fraudulent issuance of public corporate bonds. The China Securities Regulatory Commission issued warnings to several Evergrande executives at the time, including Xu Jiayin, Xia Haijun, and Pan Dayong, and imposed fines ranging from 47 million yuan to 3 million yuan.

At the same time, because Xu Jiayin made the decision and organized the implementation of financial fraud with particularly bad means and serious circumstances, and Xia Haijun organized and arranged the preparation of false financial reports with particularly bad means and serious circumstances, the CSRC decided to ban Xu Jiayin and Xia Haijun from the securities market for life; Pan Dayong was banned from the securities market for ten years.

In addition to official penalties, in June this year, Xu Jiayin also faced lawsuits in Hong Kong for defaulting on a debt of 5.3 billion yuan. Creditors applied to take over and sell Xu Jiayin's properties in Hong Kong to pay off the debts.

China Evergrande’s shares began to be suspended from trading at 10:18 am on January 29 this year, and will remain suspended until further notice.