Evergrande has more than $300 billion of debt and is scrambling to raise cash by selling assets and shares to repay suppliers and creditors….reports Asian Lite News
Crisis-hit Chinese real estate giant Evergrande has suspended trade in its shares in Hong Kong as investors await news on its restructuring plan, the BBC reported.
The statement to the stock exchange did not give a reason for the trading halt.
Evergrande has more than $300 billion of debt and is scrambling to raise cash by selling assets and shares to repay suppliers and creditors.
Last week, the company dialled back plans to repay investors in its wealth management products, the report said.
Evergrande said on December 31 that each investor in its wealth management product could expect to receive $1,257 each month as principal payment for three months irrespective of when the investment matures.
The company had earlier not mentioned any amount and had agreed to repay 10 per cent of the investment by the end of the month when the product matures.
Evergrande said in a statement posted on the wealth unit’s website that the situation was not “ideal” and that it would “actively raise funds”, and update the repayment plan in late March, without giving further details, the BBC reported.
The announcement was seen as highlighting the deepening cash squeeze at the struggling property developer.
Over the weekend, local media reported that a city government on the Chinese resort island of Hainan had ordered the company on December 30 to demolish its 39 residential buildings there within 10 days, as they were built illegally.
The company’s $19 billion in international bonds were deemed to be in default by rating agencies after it missed a payment deadline last month.