Chinese real estate firm Evergrande, which is in financial trouble, reports that one of its subsidiaries has been sentenced to pay 7.3 billion yuan ($1.08 billion) in damages for breaching its loan obligations.
Evergrande Group (Nanchang) Co. Ltd was required to pay the guarantor of its obligations.
The company stated in a statement to the Hong Kong Stock Exchange on Sunday that its subsidiary had not met its debt commitments to a guarantor who has not been identified.
Evergrande said it intends to unveil “a detailed offshore restructuring strategy within 2022,” according to an exchange filing on Friday, but revealed some information on “preliminary restructuring principles” for its offshore debt.
Evergrande stated that it has achieved “good progress” in its offshore restructuring process, but stressed that it is still collaborating with creditors and advisors to carry out a due diligence investigation of the business.
“Given the size and complexity of the Group and the dynamics the Group finds itself in, the due diligence process remains ongoing,” Evergrande said.
The real estate company added that the work might be completed in the “near future.”
Evergrande promised in January that it would publish “a preliminary restructuring proposal” within six months after creditors demanded updates and threatened legal action.
Investors were given the reassurance in June that the plan will be carried out by the end of July.
Since last year, Evergrande, the most indebted developer in China with $300 billion in liabilities, has been at the center of the nation’s real estate problems.
Evergrande struggled for months to raise money to pay back creditors, suppliers, and investors before defaulting on its US dollar bonds in December.
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