China Evergrande Group (3333.HK) announced on Wednesday that an agreement to sell a 50.1% interest in its property services company had fallen through, putting the troubled developer's chances of avoiding a potentially disruptive default in jeopardy.

The arrangement with a subsidiary of Hopson Development (0754.HK) to sell half of Evergrande Property Services would have been valued HK$20.04 billion ($2.58 billion), according to Evergrande.

The parties stated in separate filings to the exchange that they were unable to reach an agreement on the parameters of the sale.

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Evergrande, which is on the verge of bankruptcy due to more than $300 billion in debt, was earlier reported to be in discussions to sell a share in Evergrande Property Services to smaller rival Hopson Development Holdings for about HK$20 billion ($2.6 billion).

Trading in China Evergrande, Evergrande Property Services Group, and Hopson shares has been suspended since October 4 and is anticipated to resume on October 21.