The Chinese property developer’s efforts to restructure more than $300 billion in debt are being complicated by criminal investigations into current and former executives.
Banks hold enormous amounts of real estate debt, and regulators are nervous. But a fast-moving crisis is unlikely because the government has extensive control of the system.
The real estate firm halted critical work to settle its debts and investors dumped their stock amid news executives were under suspicion by the authorities.
The embattled Chinese property giant is said to have avoided default by meeting a deadline to pay interest on small loans. But it must repay billions within the next year.