BEIJING, Dec 3 — The Chinese government summoned the embattled founder of real estate firm Evergrande today, after the group issued a statement warning it might not have sufficient funds to continue to meet its financial obligations. China Evergrande, which is drowning in a sea of debt worth...
BEIJING, Dec 3 — The Chinese government summoned the embattled founder of real estate firm Evergrande today, after the group issued a statement warning it might not have sufficient funds to continue to meet its financial obligations.
In a follow-up statement hours later the provincial government in Guangdong said it had “immediately summoned Xu Jianyin and... agreed to send a working group to Evergrande Real Estate Group to supervise and promote enterprise risk management”. An Evergrande unit has bond coupons worth US$82.5 million in total due Monday, when the grace period ends, Bloomberg reported this week.
The same day, its auto unit said that it had returned undeveloped land worth some 1.2 billion yuan , and is in active talks with buyers to potentially dispose of some assets.The property sector –- a key growth engine in China -– has cooled in recent months with stricter home buying rules and the liquidity crisis affecting some of the country’s largest developers.
Another Chinese developer, Kaisa Group, is also facing default after saying Friday it had failed in a bid for a debt swap that would buy it crucial time. In a statement on Friday, the firm said it will explore solutions “including but not limited to renewal and extension of borrowings and disposing of assets”.
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