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September 14, 2021

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Firm denies it is going bankrupt

Property giant Evergrande said yesterday it is facing “unprecedented difficulties” but denied rumors that it is about to go bankrupt, as the Chinese conglomerate battles to reassure investors and bring down its huge debt pile.

The Hong Kong-listed developer has run up a mountain of liabilities totaling more than US$300 billion after years of borrowing to fund rapid growth.

The group was downgraded by two credit rating agencies last week while its shares tumbled below their 2009 listing price.

Homebuyers across the country are concerned about the safety of their investments, prompting Evergrande to try to defuse tensions. “The recent comments that have appeared online about Evergrande’s restructuring are completely false,” the company said in a statement on its website.

It went on to say the company “is indeed facing unprecedented difficulties at the moment, but it will firmly carry out its main corporate responsibilities, fully dedicate itself toward the resumption of work and industry.”

The group will “protect housing transactions (and) intends to do everything possible to restore normal business operations, and fully guarantee customers’ legal rights and interests.”

A report last week by Capital Economics said Evergrande had 1.4 million properties it has committed to completing, as of the end of June.


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