Liquidators for China Evergrande are seeking to recover $2 million from Harvard University as part of broader efforts to recoup donations made by the collapsed property giant. The demand letter, sent by Alvarez & Marsal, targets part of a $14 million donation made in early 2020 for Covid-19 research. Evergrande had pledged $115 million for a five-year partnership with Harvard and a Chinese institute, but later reneged, drawing scrutiny from former senator Marco Rubio.
The move underscores the difficulty of recovering assets from Evergrande, which collapsed in 2021 with over $300 billion in liabilities. Liquidators have recovered only $436 million of the $46 billion sought by creditors, calling prospects for mainland asset recovery "remote." Other assets include a Claude Monet painting, receivables, and a private jet in Guangzhou. Liquidators are also pursuing PwC for $8.4 billion over alleged fraud.
Founder Hui Ka Yan was sentenced to life imprisonment, and subsidiaries were fined billions. Evergrande also donated $156 million to Harvard in 2013 and 2016, with liquidators finding no clear commercial rationale.
Source: Financial Times Companies · Summarized by HeadlinesBriefing