More Trouble Looms For Evergrande As Angry Debtors Prepare To Take Legal Action: FT

A group of distressed debt investors in the U.S. and U.K. are prepared to take action against Evergrande Group EVGPY, the Financial Times reports.
The investors included Saba Capital, Redwood Capital Management, and Ashmore.
The action came after the indebted property developer admitted that undisclosed lenders took $2.1 billion in cash from its Evergrande Property Services Group subsidiary pledged as security for "third party guarantees."
Also Read: Is The Evergrande Crisis Over?
The revelation could trigger a legal battle between the Chinese developer and significant international investors who alleged unfair removal of cash that could have repaid the company's bonds.
The investors wanted to know how Evergrande looked to recover the money and whether the board of the property services subsidiary approved its use as a pledge.
Evergrande's default, which began with missed payments in September, was characterized by a lack of disclosure, leaving the international investors clueless.
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