Evergrande Races to Restart Projects as Debt Repayments Loom

Evergrande Group said on Sunday it had made initial progress in resuming construction work with its chairman vowing to deliver 39,000 units of properties in December, compared with fewer than 10,000 in each of the previous three months.

Evergrande is the world’s most indebted property developer, with over $300 billion in liabilities. It is struggling to repay bondholders, banks, suppliers and deliver homes to buyers, epitomizing a bloated industry suffering from the Chinese government’s deleveraging campaign.Company chairman Hui Ka Yan said that no one at Evergrande would be allowed to “lie flat,” urging employees to fight day and night so that sales can be resumed and debts repaid, Evergrande said in a statement.

His pledge came a day after China’s top real estate regulator told the official Xinhua News Agency the government would resolutely tackle risks stemming from overdue delivery of residential properties by some top developers.The statement said Evergrande had resumed cooperation with more than 80% of decoration companies and long-term suppliers, signing 6,869 contracts with material suppliers.

The Chinese government has in recent months marginally eased property financing to prevent a hard landing of the sector. Still, it has  not reversed its property curbs designed to reduce leverage and discourage speculation.