China Evergrande gets $260 mln demand, warns of non-payment

Indebted real estate developer China Evergrande has got a demand under a $260 million guarantee obligation, the company said on Friday, adding it may be unable to repay due to a liquidity crisis that has gripped China's property sector.

Repayment dates under certain other agreements may be pulled forward if it was unable to meet the obligation, the company warned in a filing to the Hong Kong stock exchange Evergrande, once China's top-selling developer, has already failed to pay coupons totalling $82.5 million due on Nov. 6 as it stumbles from debt deadline to deadline and grapples with more than $300 billion in liabilities.

Its statement on Friday prompted the government of southern China's Guangdong province, where the company is based, to summon Evergrande chairman Hui Ka Yan. The Guangdong government said it would - at Evergrande's request - send a working group to the company to oversee risk management, strengthen internal controls and maintain normal operations.

Evergrande said on Friday it planned to actively engage with creditors to come up with a plan to deal with its offshore debts. The developer said there was no guarantee that it would have sufficient funds to continue to perform its financial obligations.

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