Evergrande gets $818M as football stadium land deal cancelled
Heavily indebted Chinese property giant Evergrande says he will get $818 million after cancelling a contract to buy land rights for the football stadium.
Stadium construction started two years ago but has been facing problems for months.
This stadium was for guangzhou fc, a top level team that evergrande bought controlling shares in 2010.
The company added that the money received from the contract will be used to settle the loans related to the project.
This announcement came when evergreen tried to collect cash to pay for the loan.
Once China’s best-selling property developer, the firm has been struggling under a debt burden of over $300bn since last year, of which about $20bn is held by investors outside the country.
In September 2021, it said construction work at Guangzhou evergreen football stadium will continue despite the debt crisis. But a government agency took control of the stadium last year and planned to sell it, the news agency Reuters reported in November.
At that time, Reuters reported that Evergrande was also considering selling Guangzhou to fc. But the club was not mentioned in the fresh statement of evergrande.
In April 2020, the company paid $1 billion to use the land and construction work started on the project that year.
The $1.8bn (£1.5bn) stadium, which was expected to have at least 80,000 seats, was to be completed by the end of the year.
In 2010, evergrande took control of guangzhou fc and renamed guangzhou evergrande taobao fc.
With the infusion of the new money, the squad was strengthened and it immediately gained growth in the top tier of Chinese football. Since 2011, he has won the Chinese super league title eight times, including seven seasons in a row.
However, this season the club is currently close to the lowest level in the league.
Earlier last year, the club said it would return to its original name – guangzhou fc.
Guangzhou is the capital and largest city of Guangdong province in south China.
On Sunday, Evergrande said one of its subsidiaries was ordered to pay $1.1 billion for failing to meet its debt obligations.
The firm said that the Evergrande group (Nanchang) Co. LTD should pay to the guarantor of its obligations.
It came only two days after he announced a long wait about the purpose of restructuring his foreign loans.
The company said it would offer packages of its offshore lenders’ assets that might include shares in its overseas units – including an electric vehicle business and property services provider – as a mater
However, the proposal was viewed by some observers as not providing sufficient details of how the firm aims to reorganize its heavy responsibilities.
Last month, the firm said that its two top officials had resigned, while an internal investigation found that they had misused about $2 billion in loans.
Evergrande said he found that chief executive zia haijan and chief financial officer pan darong were involved in bending loans received through his property services unit to the broad group.