SHANGHAI—Chinese real-estate developer Agile Property Holdings said Chinese prosecutors have its chairman in custody, dealing another blow to the firm which is struggling with refinancing risks amid a nationwide housing downturn.
Chen Zhuo Lin “was required to stay at a designated residence since the evening of September 30,” by the Kunming City People’s Procuratorate of the People’s Republic of China, Agile said in a statement late Friday. The Kunming City People’s Procuratorate is the local agency in southwest China’s Yunnan province responsible for prosecution.
The procuratorate couldn’t be reached for comment.
The statement said company directors don’t know further details and aren’t aware of any missing funds or improper use of assets.
The board has designated Chan Cheuk Yin and Sin Fong Luk, Mr. Chen’s wife, as acting co-chairpersons, noting their experience and familiarity with the firm’s operations.
The Guangzhou-based property developer, which has projects in at least 17 Chinese cities, shelved plans Friday for a 2.75 billion Hong Kong dollar (US$348 million) rights issue, driving many analysts to question the firm’s ability to repay some of its loans. Shares of the firm have been suspended from trading since Oct. 3. They will resume trading on Oct. 13, the statement said.
Agile also said that it has reviewed its loan facilities and that none of the provisions have been breached following the trading suspension.