Real estate giant does not meet the credit
Evergrande daughter to pay more than $1 billion
In China, a subsidiary of the struggling real estate giant Evergrande cannot service a loan. You should therefore pay 1.3 billion dollars.
Evergrande said in a mandatory announcement to the Hong Kong Stock Exchange on Sunday that Evergrande Group Nanchang had failed to meet its obligations to an unnamed creditor. Therefore, she is now supposed to pay out a guarantee for the loan, a stake in Bank Shengjing worth $1.3 billion.
In China, the entire real estate sector is in trouble; Evergrande ran up $300 billion in debt last year. For a long time, the group was number one in the industry, which accounts for more than a quarter of the gross domestic product of the People’s Republic. In 2020, the leadership in Beijing began tightening regulation of the real estate sector to limit speculation in buildings.
Evergrande was supposed to come up with a restructuring plan last month and with it a way to avoid bankruptcy. The real estate giant only said on Friday that it was making “positive progress” – the group did not provide any details. Evergrande had sold stakes in other companies and parts of its own business in recent months to reduce debt. The Hong Kong headquarters is still on offer, a 26-storey building that is expected to bring in more than one billion euros.
(SDA)