China Evergrande soccer stadium taken over by authorities -source

HONG KONG/BEIJING, Nov 26 (Reuters) – A authorities physique has taken over China Evergrande Group’s (3333.HK) soccer stadium with a view to promoting it, an individual with direct data of the matter advised Reuters, because the debt-laden property developer scrambles to satisfy liabilities.

Evergrande, which has been struggling to satisfy repayments on over $300 billion in debt, can be contemplating promoting money-losing Guangzhou Football Club, the individual stated.

Construction on the 12 billion yuan ($1.86 billion) Guangzhou Evergrande Football Stadium started in April final 12 months for completion by the top of 2022, when it was set to be the world’s largest soccer venue by capability.

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However, Evergrande has halted development resulting from lack of capital and ceded management to authorities which plan to promote the stadium, or – within the absence of patrons – purchase it by way of state-owned Guangzhou City Construction Investment Group, the individual stated, declining to be recognized because the matter just isn’t public.

Another individual aware of the matter stated development had stopped for at the least three months.

Evergrande declined to remark. In September, it stated work on the stadium was continuing “as normal”. learn extra

The Guangzhou metropolis authorities didn’t reply Reuters’ calls. Guangzhou City Construction Investment didn’t reply to a faxed request for remark.

TENTERHOOKS

Evergrande was as soon as China’s top-selling property developer however is now struggling to repay collectors and suppliers. Local governments throughout China are steering gross sales of a few of its belongings, folks aware of the matter have advised Reuters. learn extra

Evergrande’s troubles in assembly offshore bond repayments rattled markets and upended the broader property sector with a string of developer defaults and credit-rating downgrades.

It pulled again from the brink of default up to now month, leaving buyers on tenterhooks as they wait to see whether or not it will possibly meet obligations to pay an overdue coupon value $82.5 million earlier than a 30-day grace interval expires on Dec. 6.

EXIT

Evergrande purchased management of Guangzhou FC for 100 million yuan in 2010, and noticed its worth hover at 19 billion yuan earlier than its delisting in March. However, the membership has suffered high-profile exits towards the backdrop of its proprietor’s monetary woe.

In September, the eight-times Chinese Super League champions stated head coach Fabio Cannavaro had left by mutual consent. Brazil-born ahead Ricardo Goulart, who took Chinese citizenship to assist China attain the World Cup, terminated his contract with the membership, Reuters reported this month.

Since August, an Evergrande-owned soccer college has laid off over 100 workers resulting from liquidity constraints, stated an individual near the college and a lawyer representing a few of these workers. Both declined to be recognized resulting from sensitivity of the matter.

Foreign coaches and translators have been requested to go away, the lawyer additionally stated.

It is unclear how many individuals the college employed earlier than or after the redundancies. An individual near Evergrande stated the college was working as regular.

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Reporting by Julie Zhu in Hong Kong, Cheng Leng in Beijing and Zhang Yan in Shanghai; Writing by Clare Jim; Editing by Sumeet Chatterjee and Christopher Cushing

An aerial view shows the construction site of Guangzhou Evergrande Football Stadium, a stadium for Guangzhou FC, developed by China Evergrande Group, in Guangzhou, Guangdong province, China, Sept. 26, 2021. REUTERS/Thomas Suen/File Photo

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