Chinese authorities are considering a proposal to dismantle China Evergrande Group by selling large parts of its assets, according to a Bloomberg report citing people familiar with the matter.
The restructuring proposal submitted to Beijing includes selling most of its assets expect separately listed property management and electric vehicle units.
A group led by China Cinda Asset Management Co., a state-owned bad debt manager and major Evergrande creditor, would take over any unsold property assets, Bloomberg reported.
In the case the plan is approved by senior official in Beijing, it would mark one of the biggest step by Xi Jinping’s regime to prevent a disorderly collapse of the world’s most indebted property developer.