Exiled Chinese businessman Guo Wengui has said that he will drop his personal bankruptcy case because he says he does not have the money to cover the associated legal costs, Reuters reported. Guo, the former real estate magnate who fled China for the U.S. in 2014 ahead of corruption charges, said in court papers filed on Wednesday that he would not contest a call for his chapter 11 case to be thrown out by a fund that loaned money to Guo's companies. The lender, Pacific Alliance Asia Opportunity Fund (PAX), moved to dismiss the bankruptcy in April, arguing that Guo had only filed to avoid paying fines. Guo said he filed to resolve all of his issues with his creditors. Guo filed for bankruptcy in Connecticut in February after a New York court ordered him to pay PAX $254 million stemming from a contract dispute. PAX had initially loaned two of Guo’s companies $100 million in 2008 for a construction project in Beijing and sued Guo when he failed to pay off the loan. Guo, who also goes by Ho Wan Kwok, said in Wednesday’s filing that he could no longer afford the legal costs of the bankruptcy, blaming PAX for waging “unrestrained legal warfare” in its effort to reach assets, including a New York penthouse and a luxury yacht. Guo says that he does not own either asset, and they actually belong to his children.
