Pressure on giant property group China Evergrande has intensified.
Fears over its ability to repay investors triggered protests earlier this week.
And will likely rattle Beijing.
The cash-strapped group, which has about $305 billion in liabilities, said on Tuesday (Sep 14) it has engaged advisers to examine its options.
It warned of default risks amid plunging property sales.
Regulators and financial markets are worried that any crisis could ripple through China's banking system.
And potentially trigger wider social unrest.
In the latest development, Evergrande said two of its subsidiaries had failed to uphold guarantee obligations for $145 million worth of wealth management products.
In a statement to the Hong Kong Stock Exchange it said this could "lead to cross-default".
The company's shares slumped over 11 percent to a seven-year low in Hong Kong on Tuesday.
And the Shanghai bourse halted trading of its listed bonds amid wild swings in its price.
Evergrande says online speculation about bankruptcy and restructuring are "totally untrue."
That came despite growing markets expectation that Evergrande may need to restructure.
But it says it's talking to potential investors to sell some of its assets.
And blamed "ongoing negative media reports" for dampening confidence.
Angry investors gathered near Evergrande's headquarters in the southern Chinese city of Shenzhen on Monday (September 13).
They were demanding the firm repay loans and financial products.