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Evergrande Cancels Stadium Deal, Gets $818 Million Refund

  • Funds to be used to settle debts related to Guangzhou project
  • Any Evergrande restructuring could be among China’s biggest
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China Evergrande Falls Short of Promised Restructuring Plan
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China Evergrande Group, the world’s most indebted developer, said it will receive a 5.52 billion yuan ($818 million) refund from Guangzhou after canceling a contract to build a football stadium in the city.

The refund will be transferred into a project escrow account, with funds used to settle debts related to the Guangzhou Evergrande Football Stadium deal, the company said in a regulatory filing Thursday. Evergrande said it expects to record a loss of about 1.255 billion yuan for the total book value of the land, buildings and other improvements minus the refund.