NEW YORK—Struggling Chinese real estate developer China Evergrande has announced that its chief executive and chief financial officer have resigned after initial findings in a probe found $2 billion belonging to its property unit subsidiary was redirected back to the group.
The news, announced Friday, comes as the company is already saddled with $310 billion in debt.
China Evergrande said CEO Xia Haijun and CFO Pan Darong had resigned over their involvement in an arrangement to use the money as collateral to guarantee a series of loans. The money was then redirected to Evergrande through a third party, the company said. The loans involved three sets of deposits. The company didn’t name the third party….