China Evergrande Group’s deal to sell a 51% stake in its property services unit has been halted, a new struggle to the debt-ridden developer’s hopes of avoiding disruptive default.
- Evergrande, swinging on the brink of potential collapse with over $300 billion in debt, was in discussion to sell a stake in Evergrande Property Services to rival firm Hopson Development Holdings for nearly $2.6 billion.
- The potential sale has been put on hold as the company is yet to get the approval of the Guangdong provincial government that is overseeing Evergrande’s debt restructuring.
- Evergrande is racing to raise funds to pay its numerous lenders and suppliers amid increased worries about a potential offshore default later in the week after the company missed several interest payments due on its bonds.
The liquidity crisis at Evergrande has hampered global markets. High-yield bonds issued by Chinese property developers have suffered significant blows.
EGRNF up +6.44%
Source: Reuters