Hong Kong property agencies suing Evergrande to recover commissions

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HONG KONG (Reuters) -Two Hong Kong property agencies are suing heavily indebted China Evergrande Group over unpaid commissions, according to a court filing and media reports, piling pressure on the developer as it scrambles to raise funds and avert a collapse. Centaline filed a suit against Evergrande in September to recover HK$3.1 million ($398,196) in overdue commissions, a court filing showed, while the South China Morning Post newspaper reported Midland Holdings is claiming unpaid commission of HK$43.45 million for two developments in Hong Kong.

FILE PHOTO: The logo of China Evergrande is seen at outside China Evergrande Centre building in Hong Kong

Centaline filed a suit against Evergrande in September to recover HK$3.1 million in overdue commissions, a court filing showed, while the South China Morning Post newspaper reported Midland Holdings is claiming unpaid commission of HK$43.45 million for two developments in Hong Kong. Centaline confirmed to Reuters it filed a claim in Hong Kong last month, but declined to comment further. Midland declined to comment, saying the case was going through legal procedures. Evergrande did not immediately respond to a request for comment.

Evergrande has vowed to repay its suppliers and contractors in mainland China as soon as possible, in some cases offering apartments or other real estate assets, as construction at many of its sites have halted because of delayed payments.

 

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