A unit of China Evergrande Group, the most indebted property developer in mainland China, has agreed to sell its stake in a project in Shantou, southern Guangdong province, continuing to pare down assets as it awaits the fate of its debt restructuring proposal, reports the South China Morning Post. The subsidiary, Hengda Real Estate Group Yuedong, will sell its entire 65% stake in Shantou Hengmeng Property Development for RMB 137.6 million ($19.4 million), according to a filing to the Hong Kong stock exchange on Thursday evening.
“The disposal serves to revitalise the group’s projects, promote the resumption of work and construction of existing projects, and safeguard the legitimate rights and interests of project investors, creditors and homebuyers,” Evergrande said in the filing.
Last month, a Hong Kong court granted Evergrande another reprieve, adjourning a hearing until January 29 and giving the company more time to restructure its debts. This was the seventh time the petition had been adjourned.