Chinese Developer Evergrande Says It Could Run Out of Money, Prompting Government Meetings

Chinese Developer Evergrande Says It Could Run Out of Money, Prompting Government Meetings

China's second-largest real estate developer, the Evergrande Group, a company that faces over $300 billion in liabilities, said in a Friday filing to the Hong Kong stock exchange that it must pay its creditors $260 million despite struggling to find money for its recent payments.

"In light of the current liquidity status...there is no guarantee that the group will have sufficient funds to continue to perform its financial obligations," the company said in its statement reported by Reuters.

Reuters wrote that this news set off a chain of meetings with government officials, starting with a Friday appointment in Evergrande's home state, the Guangdong province, where the company's Chairman Hui Ka Yan met with officials. After this meeting, the government agreed to send a "working group" that would "oversee risk management, strengthen internal controls and maintain normal operations," Reuters reported.