Waiting for beijing
Given the company’s liabilities, analysts and investors speculated that the government might step in to provide some kind of help to the corporate giant to prevent a destructive implosion.
But the ambiguity of the document-without specifying how much and when it will be paid-has others warned that the company is still in deep trouble.
OANDA analyst Jeffrey Halley stated that the payment announcement “may be only a temporary probation, and the Chinese government has not sent any signal on what measures (if any) will be taken to help signal an orderly end or reorganization. “
Although it is mainly a developer, Evergrande Real Estate, which has 200,000 employees, operates in more than 280 cities and claims to indirectly create 3.8 million jobs in China, has been buying it frantically for more than a decade.
The company hired experts including financial services company Houlihan Lokey, and the company reorganized Lehman Brothers When it went bankrupt during the global financial crisis-because it tried to avoid collapse.
