The struggling China Evergrande Group announced that work has been halted on some of its real-estate projects due to delays in payments to its suppliers and contractors, reported the Wall Street Journal. The announcement signals how the developer’s financial troubles have spilled over into its business operations.
The highly indebted company also warned for the first time that it may default on its borrowings if it can’t resolve its liquidity issues.
Evergrande, one of China’s largest residential developers, said it has been selling assets and apartment units to raise cash. The group also said that “with the coordination and support of the government,” it is actively negotiating with suppliers and construction companies to try to get them to resume work on its properties.