Evergrande CEO Seeks Lavish Lifestyle Funds

A significant development has emerged in the liquidation of China Evergrande Group, as its former CEO, Xia Haijun, has requested a substantial increase in his monthly living expenses. Xia's legal team is seeking to raise the court-approved cap from HK$50,000 ($6,376.5) to $43,000, arguing the current amount is insufficient for his lifestyle and past earnings.

This plea comes as liquidators are attempting to recover $6 billion in dividends and remuneration from seven defendants, including Xia, following an asset freeze in June 2024. The judge presiding over the case, Russell Coleman, voiced strong skepticism, stating, "I do not trust this man," due to Xia's alleged history of evasion and the perceived lack of evidence supporting his request.

The liquidation process, initiated in January 2024 after Evergrande's 2021 default, aims to recoup assets for creditors. Despite efforts to recover funds from individuals like Xia, creditors have yet to receive any payout. Xia has previously contested asset disclosure orders, citing personal danger, but his appeals have been unsuccessful.

Evergrande, once a property giant, has been emblematic of China's real estate crisis. Xia resigned in 2022 after an investigation into undisclosed loan guarantees. His previously earned salary was nearly 150 million yuan ($22.1 million) in 2021.