EXCLUSIVE| Major suppliers of Chinese real estate giant Evergrande have announced they will suspend loans and stop work in a move that could signal trouble for the global economy.
Asia Markets has been shown a ‘Notice of Suspension of Loans and Works’ from a collection of Evergrande suppliers in the Hubei province, which notifies government officials of their intentions.
The notice states that since Evergrande began failing to repay its debts in July of last year, small and medium-sized suppliers in the region have fallen into a crisis and have been left with no choice but to stop repaying their own debts.
The suppliers say they have spent their entire net worth purchasing materials to supply various Evergrande projects, which are unfinished.
“Suppliers are heavily indebted, their lives are shattered, and they are no longer able to continue,” the notice says.
The development is yet another concerning sign for he embattled company, which many analysts believe is on the brink of collapse.
According to reports, this month at least 270 owners of unfinished properties issued a statement to stop paying mortgages worth billions of dollars.
Asia Markets subscribers were the first to be delivered this breaking news. Join FREE here.