(Yicai Global) March 17 -- Tahoe Group said founder and Chairman Huang Qisen is assisting the authorities with an investigation. The cash-strapped Chinese property developer’s shares fell.

Tahoe did not disclose any details or reasons for the investigation in a statement yesterday. A number of employees told Yicai Global that they are also not aware of the details.

The Fuzhou-based company said the situation would not affect operations and that the board has activated a contingency plan. Co-presidents Ge Yong and Wang Jinggang are leading the firm’s normal production and operations, it added.

Shares of Tahoe [SHE: 000732] fell 1.1 percent today to close at CNY2.73 (43 US cents) each.

Tahoe hit a cash crunch in the first half of 2020 because of the impact of Covid-19 and other factors, it said in a separate press release late yesterday. For over a year Huang led its efforts to revitalize its assets and cuts its liabilities, the firm said.

The company said it has reached settlements with most financial institutions and delivered over 20 projects nationwide since 2021.

Many trust firms filed lawsuits against Tahoe. Sichuan Trust demanded the firm repay about CNY4.8 billion (USD756 million) worth of principal, interest, and penalty interest, while Zheshang Jinhui Trust sued Tahoe over a CNY700 million (USD110 million) overdue loan.

Tahoe has been listed as a debtor by local courts at least 15 times, with the amount accrued totaling CNY10 billion (USD1.6 billion).

Editor: Futura Costaglione