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China Evergrande Eyes Unit Asset Shift Move to Settle Debt

The rumoured move comes after loans secured by Evergrande Property Services were diverted to the parent group


A Shenzhen state firm is set to complete four China Evergrande projects, the two companies said on Tuesday.
A partially removed company logo of China Evergrande Group is seen on the facade of its headquarters in Shenzhen, Guangdong province. Photo: Reuters.

 

The ailing China Evergrande Group is looking to shift assets to its property unit in a bid to settle some of its debt payments.

In July, the company revealed that loans secured by Evergrande Property Services had been diverted to the parent group, which led to Evergrande Group’s chief executive and finance head stepping down.

Deposits worth 13.4 billion yuan ($1.90 billion) held by the property unit had been used as collateral for pledge guarantees and seized by banks.

 

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Now Evergrande Group, which has about $300 billion in debt, said in a filing it was in talks with the unit to muster funds to repay the loans.

Evergrande Group added that it had sold 18.16 billion yuan worth of properties from January to August, and it has 706 pre-sold but undelivered construction projects.

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

China State Firms Buy Out $1bn Evergrande Stake in Bank

Hong Kong Court Sets Back Evergrande Wind-up Lawsuit

Can China Evergrande Save Itself With Debt Restructure?

China Evergrande CEO, CFO Resign Amid Investigation

Evergrande Seen Lobbying Creditors in Bid to Fight Wind-up

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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