China Evergrande: attempts to auction onshore affiliate Fengtao’s assets fail for a third time in 3 weeks
- No bids were received for Fengtao’s ‘other account receivables’ at the end of the 24-hour deadline on Friday morning, according to auction platform Jingdong Paimai
- Fengtao made two unsuccessful attempts in January to sell the receivables, which were listed on the auction platform for 11.5 billion yuan (US$6.2 billion)
Assets of Fengtao (Shanghai) Property Company, a property management services provider, were listed for sale on Thursday after two failed attempts last month, according to information available on Jingdong Paimai, an auction platform under Chinese e-commerce giant JD.com.
The assets were labelled as “other account receivables” totalling 11.5 billion yuan (US$6.2 billion). Despite a minimum reserve price of 7.4 billion yuan, no bids were received at the end of the 24-hour auction period at 10am on Friday, Beijing time.
Evergrande and its subsidiaries have total liabilities amounting to some 300 billion yuan, and are involved in 2,073 litigation cases for amounts of more than 30 million yuan as of the end of December 2023, according to the company.
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Fengtao made two unsuccessful attempts to sell its assets in January. The reserve price at the first auction on January 14 was 11.5 billion yuan, which was lowered to 9.2 billion yuan on January 24, according to Jingdong Paimai.