Chinese property tycoon Chen Hongtian faces demands on $200M of overdue loans
Chinese property tycoon Chen Hongtian faces demands on $200M of overdue loans
Chinese property tycoon Chen Hongtian is facing demands from banks to repay over US$200 million in loans, for which he and his family have provided personal guarantees.
Nanyang Commercial Bank has called on Chen Hongtian, chairman of the Hong Kong-based Cheung Kei Group, and his wife Chen Yao Li Ni to settle payments on five overdue term-loan facilities totaling HK$799 million ($101.9 million), plus default interest, according to the Straits Times.
These loans, originating from 2017 with a five-year term, were still outstanding as of March 8.
This recent lawsuit from Nanyang Commercial Bank follows a March demand from United Overseas Bank, which sought payment of both the principal and unpaid default interest totaling HK$848 million ($108.2 million). Chen, along with his wife and son, had similarly guaranteed this loan, which was due as of March 21.
As Cheung Kei Group, which specializes in global real estate acquisitions and operations, grapples with “short-term liquidity issues,” Chen has lost properties worth at least US$1.4 billion to creditors in both Hong Kong and London, according to data compiled by Bloomberg.
According to the court filing, the defendants have 14 days from the date of the writ to either settle the banks’ claims or indicate to the court whether they intend to contest the proceedings or make an admission, reported the South China Morning Post.