Cash-strapped Evergrande, a Chinese real estate company, has raised roughly $145 million (£107 million) just before a deadline for a new debt interest payment. The corporation has sold a 5.7% share in media company HengTen Networks Group.
Evergrande must make $148 million in outstanding interest payments this week. It has avoided financial default so far by making overdue payments just before 30-day grace periods ended. Evergrande possessed a majority stake in HengTen at the start of this year, but it has subsequently sold a number of shares in order to meet its financial obligations.
Tencent, a Chinese technology company, is HengTen's other major corporate shareholder, having purchased a 7% stake from Evergrande for $266 million in July. With the latest share sale, Tencent has become the media company's largest stakeholder, with a nearly 24% stake.
Apart from HengTen, Evergrande recently sold Protean, an electric motor manufacturing company situated in the UK. It didn't reveal how much money it made from the sale of the company, which it bought for $58 million in 2019.
Evergrande, however, has struggled to sell some of its other assets in recent months as it tries to raise funds for debt interest payments.
The company froze trading in its shares on the Hong Kong Stock Exchange last month ahead of a "significant transaction" announcement. After a 17-day suspension, Evergrande announced that a $2.6 billion plan to sell a stake in its property services unit had fallen through due to a breakdown in negotiations.
Evergrande's $300 billion debt mountain, as well as the company's difficulties repaying its debts, have sparked fears that the company's potential collapse might send shockwaves through global markets.