Debt ridden Evergrande races to finish building homes
Embattled Evergrande has vowed to build four times as many housing units in December than it did in the previous three months.
With the Chinese property company buckling under $300bn of debt the pressure is on for Evergrande to complete existing projects so that it can repay creditors. The company last night announced that 92 per cent of Evergrande’s property projects have so far restarted, compared to just 50 per cent at the beginning of September.
Company chairman Hui Ka Yan said: “since the company was in trouble, we have delivered less than 10,000 units in September, October, and November.
“However, with the resumption of work and production, the group has 115 projects scheduled to be delivered in December, and there is still the last month left. In 5 days, we must sprint with all our strength to ensure the completion of the target of 39,000 units delivered this month,” he continued, noting that the number of project workers has risen by 31 per cent to 89,000 since September.
“As long as we do a good job in restarting work, production and construction, we’ll be able to deliver houses to buyers, resume sales and operations and pay off debts,” Chairman Hui Ka Yan added.
Earlier this month Evergrande missed a 30-day grace period deadline to pay debts worth over £82m tipping the company into default. State representatives have since taken positions on a newly created debt management committee at Evergrande, effectively giving Beijing the reins of the company.
The property behemoth’s share price has plummeted by 89.53 per cent this year to date.
Read more: Beijing steps in as Evergrande collapse becomes imminent