Evergrande bondholders to sue over $2bn claim

Evergrande’s international bondholders are threatening to sue after being blindsided by a $2bn claim on the business. A group of distressed debt investors in the US and UK, including Saba Capital, Redwood Capital Management and Ashmore, met on Tuesday and directed lawyers to begin work on the legal analysis needed to decide whether to take action against Evergrande. The move came after the world’s most indebted property developer made a surprise disclosure that mystery lenders to one of its subsidiaries had claimed more than $2bn in cash. One person directly involved in the situation said investors felt they had “no choice” but to commence legal action and that plans were already prepared. “I think it has massively changed the game,” the person said about the $2bn claim. “The atmosphere in the room is one of boiling blood.” The FT (£)