Hong Kong / Shanghai: The Chinese Group deal Evergrande to sell 51% of the shares in the property service unit has been postponed, two people with knowledge of the problem, in a blow to expectations of developers who are fought to avoid the potentially disturbing default.
Evergrande, a tipping on the verge of destruction with more than $ 300 billion in debt, was in talks to sell shares in Evergrande Property Service to Hopson Rival Hopson Holdings for around HK $ 20 billion ($ 2.6 billion), said the previous source told Reuters.
However, the agreement, which was determined to be the sale of the largest asset for the company, has been postponed because it has not won thanks to the Guangdong Provincial Government, which oversees Evergrande’s restructuring, one of the people said on Tuesday.
When contacted, a Hopson representative asked Reuters to wait for the announcement.
Evergrande and Guangdong Provincial Government did not immediately respond to Reuters’s comment requests.
Evergrande scrambled to raise funds to pay a lot of lenders and suppliers, amid fears about the possibility of default offshore this weekend after missing a series of interest payments because of bonds.
However, Hengda Real Estate Group Co., the Evergrande flagship unit, has sent funds to pay for land bond coupons 121.8 million yuan ($ 19 million) due on Tuesday, four people with knowledge of the problem.
One of the people said Evergrande, Developer No.
2 China, it is necessary to prioritize its limited funds to the domestic market where the stakes are much higher for the country’s financial system.
While it was not immediately clear why the Guangdong Provincial Government has not approved the Evergrande property service transaction, several offshore creditors Evergrande also opposed the agreement, the person added.
Another source said the announcement of the agreement would be postponed, awaiting Chinese regulatory approval.
The agreement has won the specific approval of the Hong Kong Stock Exchange, he added.
Reuters reported last week Yuexiu property belonging to China has been out of the $ 1.7 billion deal proposed to buy the Hong Kong Evergrande headquarters building about concerns about the financial development situation.
A source said the company also received a guide from the city government in the South City of Guangzhou to postpone purchases at the end of August.
Read More Market Roiled Liquidity Crisis in Evergrande has explored the global market.
High yield bonds issued by Chinese property developers have been hit especially loudly.
Evergrande bonds maturing March 23, 2022 will be officially will by default if the company does not work after a 30-day grace period for payment of the missed coupons on September 23.
But the wider offshore bond market has responded positively after it convinced comments from China Central Bank and payment coupons by two other major developers.
The Chinese high-yield debt index, which was dominated by the publisher of property developers, has seen the spread of tightening from the record level last week to around 1,484 points on Tuesday.
Sunac China, which has $ 27.14 million payments because Tuesday, has paid bondholders, sources with direct knowledge of the problem.
The source was unauthorized to talk to the media and refused to be identified.
Sunac representatives declined to comment.
Kaisa Group said on Monday it had paid a coupon because of October 16 and planned to transfer funds for a $ 35.85 million coupon due to October 22 on Thursday.
Read more in recent days, Bank Rakyat China has said the effect of abundance in the banking system from Evergrande debt problems can be controlled and that China’s economy is “okay”.
Bonds from the Chinese developers obtained on Tuesday, including modern 2022 bonds that bounced more than 8% to 40,250 cents on the dollar, while the Central China Real Estate Bonds rose more than 5% to 44.843 cents.
On Monday, Holder Sinic developers were smaller default on $ 246 million as expected.
It has warned the default last week, said it did not have enough financial resources.