China property tycoon faces debt woes

Chen Hongtian Photographer: Xiaomei Chen/South China Morning Post/Getty Images , Photographer: South China Morning Post/South China Morning Post

HONG KONG: A Chinese tycoon who had snapped up mansions and offices in Hong Kong and London faces demands from banks to repay more than US$200mil of loans for which he and his family had provided personal guarantees, in a sign of further liquidity problems for the businessman and his property-investment company.

Nanyang Commercial Bank Ltd has demanded payment from Chen Hongtian, chairman of Hong Kong-based investment company Cheung Kei Group, and his wife, Chen Li Ni Yao, on five overdue term-loan facilities totalling HK$799mil, plus default interest, according to a writ dated April 17.