China Evergrande Stock News is that Real Estate Group is the 2nd largest property developer has ranked to 122nd position out of 500 in the Fortune Global. It was first established by Xu Jiayin in 1996. It is a selling apartment company mostly to upper and middle-income resides. Evergrande is an investment holding company that is involved in real estate properties for development, investment, and management.
Hui Ka Yan is a businessman who founded Evergrande previously known as Hengda Group. Evergrande was a successful business till 2018, it owned 1300 building projects in 280 cities in China, but afterward, it started falling from its top 2nd position.
Due to its debts, it is said that the company is on the verge of a financial crisis by $88.5 billion with $300 billion in liabilities in surplus. The company is preparing for its potential downfall and has also hired financial consultants to come up from this havoc.
The company has skipped the payment of salaries to some of their employees from electric car unit and even as not paid the charges occurred during the supply of equipment in their factories.
The company was affected during the period of the pandemic when sales of property dropped for months and China ended up borrowing money from real estate developers till it reached its bottom line where it can’t borrow any new debt. Due to short in money, instead of giving payments, they gave unfinished apartments to their suppliers.
Deadlines were set for 23rd September 2021, Thursday, for a vital payment of $83.5 million as interest. The company has said that they will clear their debts on 23rd September but it didn’t declare whether it will pay in cash or assets. It is also not clear whether the company h cleared its debts or not. According to the rules if the company fails to pay back debts within 30 days then the company will be declared as default.
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