Pan Sutong bet billions on a massive project to build opulent homes in Tianjin for China’s nouveaux riche—but the gamble backfired and now Pan’s creditors want to seize his assets.had once amassed a $12.2 billion fortune that included a palatial mansion in Hong Kong virtually next door to the city’s wealthiest person, Li Ka-shing. He owned vineyards in California and France, as well as a horse-breeding and training ground in Australia stretched across more than 1,200 acres.
That case, which was heard August 2, is currently on hold pending the outcome of Pan’s appeal against the earlier ruling. In the meantime, China’s bad-debt manager Cinda Asset Management has added further to Pan’s legal troubles byhim as well as several of his associated companies for another 7.4 billion yuan in unpaid loans and accrued interest tied to the Tianjin project.
“He has to find a way to pay off those debts, or reach a new agreement with the lenders,” says Kenny Ng, a securities strategist at Everbright Securities. “Otherwise, he has no choice but to go bankrupt.”
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