The founder of Evergrande is required to pay its debts out of his own pocket. His fortune is $7.6 billion

The authorities in China have told the billionaire founder of Evergrande, Hui Ka Yan, that he must use his own money to pay off the company’s debts, according to Bloomberg, citing people familiar with the matter.

The agency added that the directive was issued after the real estate giant missed the initial September 23 deadline to pay an $84 million coupon on US-denominated bonds, but Evergrande later paid the coupon within the 30-day grace period.

And Hui’s wealth alone is unlikely to be enough to rescue the debt-laden property developer. According to the Bloomberg Billionaires Index, Hui’s net worth is around $7.6 billion, a “minor” fortune compared to the Evergrande’s $300 billion mountain of debt as of June this year.

It is also unclear whether Hui’s personal fortune is liquid enough money for the task. Bloomberg added that his fortune derives largely from his shares in Evergrande and its cash dividends.

Markets around the world have been devastated by the Evergrande debt crisis, as investors fear contagion through the global economy. And the real estate developer has a $45 million interest payment due on Friday.

Bloomberg added that local governments in China are monitoring Evergrande’s bank accounts to ensure that company funds are used to complete housing projects under construction, rather than being used to pay creditors.

 
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