BEIJING, Sept 19 (Reuters) – Money-strapped developer China Evergrande Group (3333.HK) has begun repaying traders in its wealth administration goods with serious estate, a unit of its principal Hengda Actual Estate Team Co Ltd unit claimed.
Evergrande, with more than $300 billion in liabilities, is in the throes of a liquidity crisis that has left it racing to increase resources to pay out its quite a few loan companies and suppliers. It has a bond curiosity payment of $83.5 million due on Thursday.
The business claimed in a WeChat submit dated Saturday that investors interested in redeeming wealth management products and solutions for physical assets really should get hold of their financial investment consultants or pay a visit to nearby workplaces.
Money information outlet Caixin described on Sunday that an approximated 40 billion yuan ($6 billion) in Evergrande wealth management products and solutions are fantastic. Such merchandise are commonly held by retail traders.
Distinct payment procedures and facts are issue to local problems, a purchaser service agent explained to Reuters on Sunday.
In accordance to a proposal seen previously by Reuters that Evergrande did not affirm, wealth administration product or service investors can pick from discounted flats, office, retail area or automobile parks for compensation.
Before this thirty day period, a stock exchange submitting showed that Evergrande experienced repaid 219.5 million yuan in overdue money owed due to supplier Skshu Paint Co Ltd (603737.SS) in the form of residences in a few unfinished residence projects.
On Sept. 10, Evergrande experienced vowed to repay all of its matured prosperity administration merchandise as quickly as feasible.
($1 = 6.4655 Chinese yuan renminbi)
Reporting by Aishwarya Nair in Bengaluru and Min Zhang and Tony Munroe in Beijing Modifying by William Mallard
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