Evergrande is planning to sell its stake in a 2.5m sq ft real estate project, as the company faces continued uncertainty over the progress of its colossal restructuring process.
The group, which has more than $300bn in liabilities, defaulted on an offshore bond payment in December after months of missed and delayed payments. It has since been undergoing a faltering and secretive process to restructure its debts.
In a filing to the Hong Kong stock exchange, Evergrande said it would sell its $575m stake in the Crystal City Project, a development under construction in Hangzhou, including the rights to ownership of the buildings and the construction land use rights to the site.
The proceeds will be used to pay off debts of $150m owed to Zhejiang Zhejian Real Estate Group, which is also one of two buyers of the stake, and as general working capital. The other purchaser is a state-owned real estate group.
