Evergrande sells US$1.5bil stake in Shengjing Bank

Huge impact: In this file photo, a worker is seen walking in front of the Evergrande headquarters in Shenzhen. The company has become China’s biggest corporate headache as it teeters between a meltdown and a bailout. ― AFP

HONG KONG: Scrambling to avoid defaulting on its debts, cash-strapped China Evergrande Group said it plans to sell a 9.99 billion yuan (US$1.5bil or RM6.46bil) stake in Shengjing Bank Co Ltd to a state-owned asset management company.

Shengjing Bank, one of the main lenders to Evergrande, had demanded that all net proceeds from the disposal be used to settle the financial liabilities of the property developer due to the lender, Evergrande said in an exchange filing.