Struggling property developer China Evergrande Group announced on Monday it had been told to demolish 39 residential buildings currently under construction in Hainan, with local media citing illegal construction and environmental violations, reports Reuters. The company’s shares were also suspended from trading on the Hong Kong Stock Exchange, pending “inside information.”
Evergrande is struggling to repay more than $300 billion in liabilities, including nearly $20 billion of offshore bonds deemed in cross-default by ratings agencies last month after it missed payments.
The world’s most indebted developer said late on Monday it had received an order from authorities at Danzhou city in Hainan province on December 30 telling it to demolish 39 under-construction buildings at the Ocean Flower Island project.