Shares in Chinese developer Evergrande were suspended from trading yesterday, following reports that it has been ordered to destroy millions of square feet of buildings.
The company, which has $300bn of debt, said trading in its stock had been halted pending the release of “inside information” on its prospects.
Some $20bn of its international market bonds were deemed to be in default last month after it missed payments. Last week it missed another payment of $255m.
Meanwhile, the resort island of Hainan has ordered Evergrande to demolish more than 4m sq ft of residential property, claiming the 39 buildings were constructed illegally.
The company is currently undergoing a restructuring process and asset disposal. Over the next quarter Evergrande faces deadlines on principal payments of $3.6bn, as well as interest.
