The China Evergrande Group is desperately searching to find the $148 million (£107 million) just before a deadline for a new debt interest payment.
The most indebted world developer needs to make the payment of an overdue offshore bond coupon by Wednesday, Nov. 10, per Reuters.
BBC reported the organization had gathered together $145 million from selling 5.7% of its stock in media company HengTen Networks Group. As the outlet reported, HengTen is known for creating films and television series and running a streaming network.
Floundering from deadline to deadline in recent weeks, Evergrande had managed to evade financial default so far by making overdue payments just before 30-day grace periods ended.
This was not the first time the Chinese real estate tyrant sold its share with HengTen to keep up with its incoming financial duty. Tencent, China’s largest corporate shareholder, purchased a 7% interest in HengTen from Evergrande in July for approximately $266 million.
In addition to HengTen, Evergrande recently sold Protean, an electric motor manufacturing company situated in the U.K. Details of the sales were not revealed, but the company was initially bought for $58m in 2019.
Nonetheless, Reuters noted the giant is still having other coupon payments that would mount up to $255 million on its June 2023 and 2025 bonds on Dec. 28. And the BBC reported not all its attempts to sell off assets had worked out, such as last month’s thwarted Hong Kong Stock Exchange transaction.
Worries are mounting as the world watches Evergrande grapple with its $300 billion debt mountain and debt repayments obligations.
The U.S. Federal Reserve warned China’s property woes would intensify “financial stresses in China, [which] could further strain global financial markets and negatively affect the United States.”
Economist Intelligence Unit’s (EIU) Mattie Bekink has told the BBC that if Evergrande collapses, its impact would be “far-reaching.”
“Evergrande reportedly owes money to around 171 domestic banks and 121 other financial firms,” Bekink said.
Domestically, the enterprise holds more than 1,300 projects in more than 280 cities across China, leaving concerns of what will happen to the projects if the worst-case scenario is to happen.
According to Reuters, the Chinese government has urged government-owned enterprises and state-backed property developers to buy some of Evergrande’s holdings to help reduce the risks of a demise.
There has been no word so far if the payment can be met.