Beijing: The developer of the Chinese Real Estate who fought under $ 310 billion promised debt to provide 600,000 apartments this year, a newspaper reported Thursday, in the performance of the belief could prevent the collapse and continue the normal business.
Evergrande Group has left the financial market guessing its status since the developer warns in December it might run out of cash.
The struggle to avoid investors who are worried default, but Chinese officials say any financial impact can be contained.
Xu Jiayin, Evergrande founder, announced plans to provide an apartment at February 6 meetings with employees, The Securities Times reported.
This company said aimed at monthly sales of 10 billion yuan ($ 1.6 billion) to ensure construction can be completed.
The report suggests Evergrande aim to run a normal business, contrary to expectations among corporate investors may be broken down or close.
The target of 600,000 apartments is comparable to the delivery in one of the last years of busy Evergrande, the newspaper said.
Evergrande and several smaller developers scrambled to obey more stringent limitations on loans imposed by 2020 to control the debt soaring, the concern of the Communist Party in power was very high.
Evergrande said it had 2.3 trillion yuan assets ($ 350 billion), but the company had struggled to turn it into cash to pay for bondholders and other creditors.
The company has “ almost no capital inflows ” since September, Xu said.
He previously said potential buyers were postponed by news reports on his financial struggle.
However, Xu put aside “ fire sales ” assets at a reduced price, according to the time of securities.
Evergrande has missed the deadline to pay interest on several bonds but make payments before the grace period ends and is stated by default.
Some bond holders can agree to be paid by receiving apartments.
Economists say Beijing’s priority is to ensure the family receives the apartment they have paid while avoiding a bailout that will send the wrong signal to the company under pressure to cut off debts.
The government at Evergrande’s house in Guangdong, adjacent to Hong Kong, sent officials to his headquarters in December to oversee risk management.
Other provinces and cities have sent officials to local Evergrande operations.
Troubled Chinese Builder promises 600,000 apartments: Reports
