BEIJING, Sept 19 (Reuters) – Money-strapped developer China Evergrande Group (3333.HK) has begun repaying traders in its wealth administration merchandise with actual property, a unit of its primary Hengda Actual Property Group Co Ltd unit stated.
Evergrande, with over $300 billion in liabilities, is within the throes of a liquidity crisis that has left it racing to lift funds to pay its many lenders and suppliers. It has a bond curiosity cost of $83.5 million due on Thursday.
The corporate stated in a WeChat put up dated Saturday that traders fascinated by redeeming wealth administration merchandise for bodily property ought to contact their funding consultants or go to native places of work.
Monetary information outlet Caixin reported on Sunday that an estimated 40 billion yuan ($6 billion) in Evergrande wealth administration merchandise are excellent. Such merchandise are usually held by retail traders.
Particular cost strategies and particulars are topic to native circumstances, a customer support consultant advised Reuters on Sunday.
Based on a proposal seen earlier by Reuters that Evergrande didn’t verify, wealth administration product traders can select from discounted residences, workplace, retail house or automotive parks for compensation.
Earlier this month, a inventory trade submitting confirmed that Evergrande had repaid 219.5 million yuan in overdue money owed attributable to provider Skshu Paint Co Ltd (603737.SS) within the type of residences in three unfinished property tasks.
On Sept. 10, Evergrande had vowed to repay all of its matured wealth administration merchandise as quickly as potential.
($1 = 6.4655 Chinese language yuan renminbi)
Reporting by Aishwarya Nair in Bengaluru and Min Zhang and Tony Munroe in Beijing; Enhancing by William Mallard
Our Requirements: The Thomson Reuters Trust Principles.
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