Evergrande boss sells stake to pay debts
China Evergrande's debt problems took another turn on Friday (November 26).
A source told Reuters that the Chinese government has taken over the property group's soccer stadium with a view to selling it.
Building work on the Guangzhou Evergrande Stadium started in April last year.
It was to cost $1.86 billion and was due for completion by the end of next year.
The facility was supposed to become the world's largest soccer stadium by capacity.
But the source says Evergrande has stopped construction due to a lack of capital, and passed control to authorities.
Reuters was also told the company had considered selling its money-losing Guangzhou Football Club.
China's largest real estate firm has struggled to meet repayments on more than $300 billion in debt over recent months.
The group's chairman and founder, Hui Ka Yan, has reportedly sold private jets and high-end homes to help pay off the debts.
On Thursday (November 25) he sold 1.2 billion shares in the company for a total of $344 million.
That has lowered his stake to 67.9% from a previous total of 77%.
Evergrande failed to pay bond coupons worth $82.5 million due earlier this month.
Investors are now waiting to see whether it can meet its obligations before a 30-day grace period ends on December 6th.
