Debt-laden developer giant China Evergrande Group continues to see its assets being put on tender sale to settle its financial obligations.
Evergrande issued a filing to the Hong Kong stock exchange on November 6. The group said that its receivers sold a plot of undeveloped land for residential development in Yuen Long district in Hong Kong.
Receivers are appointed by a court to deal with the business matters of companies who cannot pay their debts.
Evergrande said that the land sold for $637 million.
The proceeds from the sale will be used to repay the group’s financial obligations in relation to that residential development project.
The developer expects to record a loss of approximately $770 million from the project.
According to Reuters, this rural plot of land is close to the China border. Evergrande spent $532 million to convert it into buildable land after buying it from local developer Henderson Land for $600 million in 2019.
The land was charged as security for a $520 million financing transaction advanced to Evergrande in January 2021. The creditor Oaktree Capital Management subsequently seized the land in January 2022.
China Evergrande Group is struggling to deal with its mountain of debt. The group now has more than $300 billion in total liabilities.
After defaulting on its dollar debt at the end of 2021, Evergrande has seen many of its assets seized by creditors in both mainland China and Hong Kong.
In September, Evergrande’s local headquarters in Hong Kong, was also taken over by China Citic Bank Corp. It was put on tender sale last month. A Hong Kong prestigious mansion belonging to Evergrande chairman Hui Ka Yan was also seized by lender China Construction Bank early this month.