Chinese real estate giant Evergrande Group faces legal action as Hui Ka-yan’s son Peter Xu is sued for over HK$1 billion by his mother

Hui Ka-yan (right) and Ding Yumei (left).

27th February 2024 – (Beijing) Evergrande Group, the company faced yet another legal blow as Ding Yumei, the ex-wife of its founder Hui Ka-yan, filed a lawsuit against their son, Peter Xu, seeking a staggering amount of over HK$1 billion.

Ding Yumei, the plaintiff in the case, is the former wife of Evergrande’s chairman, Hui Ka-yan. The defendant, Peter Xu, is their second son. The lawsuit stems from a loan agreement signed between Ding and her son in June 2020. According to the court documents, Peter Xu failed to repay the agreed amount on the specified due date. As a result, Ding Yumei has brought forward two claims against her son. The first claim amounts to HK$730 million, which includes the principal amount, accrued interest, and overdue interest as per the loan agreement. The second claim involves US$40.97 million, which also includes the principal amount, accrued interest, and overdue interest. In total, the claims amount to over HK$1 billion.

This legal action adds to the mounting challenges faced by Evergrande, which has been grappling with a debt crisis of over 2.5 trillion yuan since 2019. The company has been under immense pressure as multiple creditors and investors seek to recover their funds. In January, a court ordered the liquidation of Evergrande following a petition from a creditor. The recent lawsuit against Peter Xu further exacerbates the company’s financial predicament and casts a shadow over the future prospects of the real estate giant.