Buckling under the weight of more than $300 billion in debt, Evergrande has been trying to offload stakes in other assets.
Vishnu Varathan, head of economics and strategy at Mizuho Bank, said that "targeted and partial asset disposal to meet obligations is a fairly low bar."
"The real question is whether there will be sustainable financing/cash-flow arrangements to keep the property sector as a going-concern," he told CNBC, referring to functioning businesses generating cash-flows rather than being squeezed by liquidation. Varathan added: "The wider point is that with a wall of obligations, restoring confidence is key. Whereas the general direction is still pointing to creditors making a bee-line and home-buyers being spooked."
Evergrande also faces another deadline — a dollar note worth $260 million, issued by Jumbo Fortune Enterprises and guaranteed by Evergrande, was set to mature on Monday.
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