Shares of Evergrande fell 10% on Thursday morning in Hong Kong, resuming trading after a 17-day hiatus.
The hugely indebted Chinese real estate giant had halted trading in its shares before an announcement.
Reports say real estate firm Hopson Development is expected to purchase a 51% stake in its real estate services unit.
On Wednesday, Evergrande said the $ 2.6 billion deal fell through as they were unable to agree on the terms of the deal.
Evergrande’s crisis has sparked fears that its potential collapse could send shockwaves through global markets.
Investors are concerned about its over $ 300 billion (£ 222 billion) debt. The company’s total liabilities are approximately 2% of China’s gross domestic product.
Hopson Development, another Chinese real estate company, said on Wednesday that Evergrande said the deal was terminated on October 13.
It is one of Evergrande’s indebted companies: “The company is exploring the options available to it for the protection of its legitimate interests in relation to the agreement,” he said in a filing on the Hong Kong Stock Exchange.
‘No collateral the debts will be paid’
Evergrande president and founder Hui Ka Yan says his plan is to try to get extensions for his debts and “other alternative arrangements” with his creditors.
But, he added, “there is no guarantee that the group will be able to meet its financial obligations”.
The indebted real estate giant has reportedly failed to pay interest to overseas investors twice in recent weeks.
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