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Chinese Government Takes Over China Evergrande Soccer Stadium: Reports

Chinese Government Takes Over China Evergrande Soccer Stadium: Reports
A government agency has taken control of China Evergrande's (3333.HK) soccer field with the intention of making it available for sale, a source who has direct knowledge of the matter said to Reuters as the debt-ridden property developer tries to meet obligations.
Evergrande, which is trying to pay back more than $300 billion of debt, is now contemplating selling the loss-making Guangzhou Football Club, the person who spoke to the.
Construction of the 12-billion-yuan ($1.86 billion) Guangzhou Evergrande Football Stadium started in April of the previous year and was expected to be completed in 2022. It was scheduled to become the largest soccer arena in the world in terms of capacity.
But, Evergrande stopped construction because of a lack of capital, and has handed over control to the authorities who are planning to market the stadium or if there is a lack of buyers, purchase it through the an entity owned by the state, Guangzhou City Construction Investment Group The person who spoke to the media said that not revealing his identity because the situation isn't open to the public.
A person who is who was aware of the issue claimed that construction was been suspended for at least three months.
Evergrande has not made any comments. In September, the company announced that work at the stadium was going on "as normal". Find out more
The Guangzhou city administration did not respond to Reuters requests for comment. Guangzhou City Construction Investment did not reply to a faxed request for comments.
Evergrande used to be China's most-sold property developer, but it is currently having trouble repaying suppliers and creditors. Local government officials across China are directing sales of certain assets of the company according to people who are who are familiar with the situation have said to Reuters. Find out more
Evergrande's difficulties in completing payments for offshore bonds caused a stir in markets and shook the entire property industry by triggering a series of defaults by developers and credit-rating downgrades.
It retreated from the edge of default over the last month, but it has left the investors with a tense are waiting to see if it is able to fulfill its obligations to pay a late coupon of $82.5 million before a 30 day grace period ends on December. 6.
Evergrande acquired ownership of Guangzhou FC for 100 million yuan in 2010 and was able to keep its value at 19 billion yuan prior to the club was delisted in March. But, the club has had to endure a string of notable exits amid the financial difficulties of its owner.
The team in September eight-time Chinese Super League champions said their head coach Fabio Cannavaro had resigned through mutual agreement. Brazilian-born forward Ricardo Goulart, who took Chinese citizenship to aid in helping China to qualify for their first World Cup, terminated his contract with the club, Reuters reported this month.
Since August, an Evergrande owned soccer academy has been forced to lay off more than 100 employees due to financial issues according to a source who is close to the school as well as someone who is directly aware of the layoff situation. The two individuals declined to be identified because of the sensitivity of the issue.
Translators and coaches from abroad are being asked to leave The second person confirmed the news and added that the school had around 2 billion yuan of liabilities as of the month end.
It is not clear what number of employees the school employed prior to or following the redundancies. A source close to Evergrande confirmed that the school was functioning as normal

Christopher J. Mitchell

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