Liquidators for China Evergrande (HKG:3333) are suing Hong Kong Golf Club to recover more funds from the embattled developer's assets, Bloomberg News reported Wednesday, citing a writ filed with the Hong Kong High Court.
Liquidators are looking to cash in on Evergrande's membership in the golf club, however, the current club's rules could hamper them from recovering more assets for creditors, the report said.
Among the problems liquidators face include the club asking to charge transfer fees twice, with one for the possible transfer from liquidators to any new buyer, and the other when the membership will transfer from Evergrande to the liquidators, the report said, citing people familiar with the matter.
A transfer of club membership would be deemed to have taken place when the owner is under any winding-up petition or when a court orders the liquidation of a member, the report said, citing club rules.
Membership transfer fees could be as high as one-fourth of the membership cost, which could run up to HK$18 million in the secondary market, Bloomberg said, citing a membership services website.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.