(Bloomberg) -- The ex-wife of China Evergrande Group’s founder Hui Ka Yan filed a lawsuit against his second son over HK$1 billion ($128 million) in loan payments, the latest twist in the slow unraveling of the property giant. 

The lawsuit was filed in Hong Kong by Ding Yumei, who was listed as the spouse of Hui until August. She claims that the defendant Peter Xu failed to make payments for loans borrowed in June 2020, according to court filings. 

Xu, who once ran Evergrande’s wealth management unit, was taken into custody last year along with some other staff at the division after the developer allegedly failed to pay people who invested in its investment products, local media reported at the time. Hui Ka Yan himself fell under police control in September on suspicion of committing unspecified crimes. 

Evergrande’s wealth unit ran into problems in 2021 after struggling to make payments on about 40 billion yuan of investment products. It sparked protests and prompted the company to offer reduced amounts of cash or discounted real estate instead. It initially offered to pay investors in installments, but stopped doing so two years later when its liquidity crunch worsened. 

Ding has been listed as a “third party independent” since August, suggesting she and Hui separated. She holds a Canadian passport, according to a Hong Kong company registry filing. 

She has a 5.99% personal stake in Evergrande worth about $16 million, based on the company’s last trading price before being suspended in late January, according to the Bloomberg Billionaires Index.

Evergrande received a liquidation order from a Hong Kong court last month. It’s unclear how Hui and Ding divide their fortune. The government has urged Hui to use his personal wealth to help repay investors, and creditors have asked him to inject at least $2 billion of his own money, people familiar have said.

--With assistance from Pearl Liu and Dorothy Ma.

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