(Bloomberg) -- The mainland unit of China Evergrande Group said it missed principal and interest payments totaling several billion yuan, adding further uncertainty to the fate of the giant developer at the center of the country’s property crisis.
Hengda Real Estate Group failed to repay 4 billion yuan ($547 million) in principal plus interest due on Sept. 25, the company said in a Shenzhen stock exchange filing Monday.
China Evergrande canceled key creditor meetings that had been set for this week and said it must reassess its proposed restructuring. The company faces an Oct. 30 hearing at a Hong Kong court on a winding-up petition, which could potentially force it into liquidation.
Read More: Evergrande Liquidation Risk Rises After Creditor Meet Scrapped
In March, Hengda failed to make interest payment for the 5.8% yuan bond issued in 2020 and said it would “actively” negotiate with bond holders to find a solution as soon as possible, a promise it reiterated in Monday’s statement.
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