Shares have dropped to an 11-year low for indebted Chinese property developer Evergrande following signs that it is on the verge of a default that could lead to a full-scale restructuring for the company. 

In recent months, Evergrande has gone from one crisis to the next as it faces a series of repayments on debts. In a statement released at the weekend, Evergrande said there was “no guarantee” that the group could meet its obligations, adding that creditors were demanding an immediate repayment of $260 million.  

Evergrande’s most pressing problem now is how to repay the $82.5 million due Monday. This is a deadline that has already been pushed back 30 days from November. 

“Since September 2021, the Group has been diligently reviewing its capital structure and liquidity condition with the help of its financial and legal advisors, evaluating all available strategic options, and maintaining ongoing dialogue with offshore creditors. In light of the current liquidity status of the Group, there is no guarantee that the Group will have sufficient funds to continue to perform its financial obligations,” Evergrande said in the statement. “The Group is taking a comprehensive view in assessing its overall financial condition, considering the interests of all stakeholders, upholding the principles of fairness and legality, and plans to actively engage with offshore creditors to formulate a viable restructuring plan of the Company’s offshore indebtedness for the benefit of all stakeholders.”