China Evergrande studies the transfer of assets to its real estate unit to pay its debt

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China Evergrande (HK: 3333 ) Group said on Wednesday it is looking into transferring assets to its real estate unit to pay off some of the unit’s debt payments.

In July, the company revealed that loans guaranteed by Evergrande Property Services had been diverted to the parent group, prompting the resignation of Evergrande Group’s CEO and chief financial officer.

Deposits worth 13.4 billion yuan ($1.9 billion) held by the real estate unit had been used as collateral and seized by banks.

Evergrande Group, which is about $300 billion in debt, said in a filing that it was in talks with the unit to raise funds to pay off the loans.

Evergrande Group added that it had sold 18.16 billion yuan worth of properties from January to August, and has 706 construction projects anticipated but not delivered.

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