According to the Financial Times, Evergrande’s Hong Kong headquarters building has been seized by a lender after the Chinese real estate giant failed to sell its office to pay its debts.

Sources told the news outlet that the lender had appointed a receiver this week to seize the building, valued at $1.2 billion, and force a sale.

With $300 billion in liabilities, Evergrande has been trying to sell its 26-story headquarters building in Hong Kong’s Wan Chai district to raise funds to repay its creditors. 

Reuters reported that Evergrande’s headquarters building had been pledged for a loan by lenders led by Hong Kong’s Chinese state-owned bank branch, China CITIC Bank International.

But its efforts to sell the building have failed twice. 

Last October, Chinese state-owned Yuexiu Property withdrew from a proposed $1.7 billion deal to buy the building over concerns about Evergrande’s financial situation.

In July, Hong Kong property developer CK Asset and other developers joined the bids to buy the building via a tendering process. But the sale collapsed as the offers were too low for Evergrande to accept.

Evergrande has been desperately selling stakes and properties to repay some of its offshore creditors.

This week it has completely withdrawn from Shengjing Bank after divesting all its stake in the Hong Kong-listed lender for $1.1 billion.

In late July, Evergrande missed its self-imposed deadline and failed to release a debt restructuring proposal for its $300 billion debt. The company did not provide comprehensive details on how it would restructure its huge liabilities. Offshore bondholders are owed about $20 billion. 
Evergrande is the world’s most indebted firm, with about $300 billion in outstanding debts. Since the debt crisis, the company has struggled to fulfill its financial obligations to creditors, customers, and suppliers.

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