Debt ridden Evergrande moves Shenzhen head office to cut costs
Property giant Evergrande has opted to by move its head office in a bid to save cash as the company seeks to pay back investors and complete projects.
For months Evergrande has been buckling under the weight of $300bn (£220bn) in liabilities and has missed key payment deadlines for its offshore debt.
Evergrande has moved its Shenzhen headquarters to a property that it owns in the same city as it seeks to cut costs, according to a company statement.
“In order to save costs, the company has gone through the lease cancellation procedures for Houhai Excellence Center in December 2021 and moved to its own property in Shenzhen,” Evergrande said in a statement on its website.
“The company’s registered place has not changed and is still in Shenzhen,” it added.
Evergrande’s debt crisis was prompted by a Chinese government rule change which curbed the amount of debt companies can take on.
In September, the Excellence Centre building was the scene of protests by Evergrande investors who thronged in its lobby as they demanded repayment for loans and financial products. The company’s financial woes have caused chaos in China where the company is the nation’s largest junk bond issuer.
In December, Beijing appointed state officials to take de facto control of the company through a risk management committee which has helped to oversee the recommencement of building works.
Evergrande’s share price has fallen by almost 90 per cent over the past 12 months.
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