EGRN - Why Shares in Evergrande Were Suspended Today
Shares of China's troubled property company Evergrande Group (OTC: EGRN.F) were suspended from trading on Monday due to the announcement of an order to demolish 39 buildings under construction in China. According to local reports, the building permits were illegally obtained, and authorities had consequently ordered their destruction.
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It's the last thing equity investors, bondholders, and Evergrande property investors wanted to hear. The company is engaged in an ongoing struggle for survival that involves selling assets and shares to pay suppliers and meet bond coupon payments. The news that it will have to destroy buildings under construction will not be well received.
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Why Shares in Evergrande Were Suspended Today