Troubled Chinese property giant Evergrande says one of its subsidiaries has been fined 7.3 billion yuan (£888.7 million; $1.08 billion) for defaulting on its debt obligations.
Evergrande Group (Nanchang) Co. Ltd has to make payment to a guarantor for its liabilities, the company says.
It came just two days after it outlined plans to restructure its foreign debt.
However, some commentators criticized the reorganization proposal for lacking concrete details.
On Sunday, the company said in a statement to the Hong Kong Stock Exchange that its subsidiary had failed to meet its debt obligations to an unnamed guarantor.
Evergrande Group (Nanchang) Co. Ltd had pledged a total of 1.3 billion shares it held in Shengjing Bank Co. Ltd as counter-guarantees.
“Since the borrowers did not repay the loans, the applicant fulfilled its obligations under the guarantee and claimed the subsidiary from the pledge,” Evergrande said.
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On Friday, Evergrande made a long-awaited announcement about how it plans to restructure its external debt.
The company said it would offer its offshore creditors packages of assets that could include shares in its overseas entities — including an electric vehicle business and a real estate services company — as sweeteners.
However, the proposal was seen by some as not detailing enough how Evergrande intends to restructure its huge liabilities.
Evergrande was once China’s top-grossing real estate developer but has struggled for months with more than $300 billion in debt, around $20 billion of which is held by investors outside of China.
The announcement came as China’s real estate sector, which accounts for about a third of the world’s second-largest economy, is facing a significant liquidity squeeze.
A spate of defaults involving several of the country’s heavily indebted developers has unsettled investors who fear contagion to the sector.
China’s housing crisis is estimated to have wiped out the value of the sector by more than $1 trillion in the past year.
Last month, two of Evergrande’s top bosses resigned after an internal investigation found they had abused around $2 billion in loans.
The company said it found Chief Executive Xia Haijun and Chief Financial Officer Pan Darong involved in redirecting loans secured by its real estate services unit to the broader group.
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