Evergrande vows to deliver 39,000 units of properties in December despite debt defaulting

• 28 December 2021
• International News
• 1211 Views

China Evergrande Group has vowed to accelerate their construction works with the aim to deliver 39,000 units of properties within this year, despite being downgraded to restricted default earliest this month.

According to CNN, Evergrande Chairman Hui Ka Yan said during a meeting on Sunday 26 December that no one at Evergrande would be allowed to “lie flat,” urging employees to fight day and night so that sales can be resumed and debts repaid.

“With the company resuming construction work at full steam, the group plans to deliver 115 projects in December,” Hui said in the statement. “With five days left this month, we must go all out to ensure we meet the goal of delivering 39,000 units this month.”

His pledge came a day after China’s top real estate regulator told the official Xinhua News Agency the government would resolutely tackle risks stemming from overdue delivery of residential properties by some top developers..

Evergrande is the world’s most indebted property developer, with over US$300 billion in liabilities. It is struggling to repay bondholders, banks, suppliers, and deliver homes to buyers, epitomizing a bloated industry suffering from the Chinese government’s deleveraging campaign.

In early December, Fitch Rating downgraded the company and its subsidiaries to “restricted default,” meaning that the firm has failed to meet its financial obligations.

• Business and Market