China's real estate giant Evergrande Group, which is in trouble with huge debt, has revealed that negotiations to sell its shares have not been completed.
The aim was to improve cash flow through the sale, but management is expected to become even more difficult.
A real estate management company under the umbrella of the Chinese real estate giant Evergrande Group announced on the 20th that negotiations to sell its shares to another real estate company have not been concluded.
According to the company with which it was negotiating, it was once agreed to buy 50.1% of the shares for about HK $ 20 billion and about 290 billion yen in Japanese yen, but the conditions were not met.
Due to this negotiation, trading of stocks such as Evergrande Group was suspended on the Hong Kong Stock Exchange, but it is expected to resume on the 21st.
Companies that are in dire straits with huge debt have been due for interest payments on dollar-denominated corporate bonds since September 23, but now have a 30-day grace period, he said.
However, the unsuccessful sale of shares in the affiliated companies meant that one of the means of raising funds could not be realized as the grace period was approaching the end.
In connection with this, the company admits that it is in a difficult situation, saying that "due to difficulties and uncertainties, we cannot guarantee that we will be able to fulfill our financial obligations," and management is expected to become even more difficult.