China Evergrande CEO, CFO resign amid probe into subsidiary

By ANNE D’INNOCENZIO
AP Business Writer

NEW YORK (AP) — 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 its 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 company said the money was then redirected to Evergrande through a third party.