China Evergrande Group has dissolved several district-level units of Fangchebao (FCB), its online real estate and automobile marketplace, due to shrinking capital and business, Chinese media outlet Cailianshe reported on Wednesday, citing sources close to the embattled developer.
FCB had planned for an initial public offering (IPO) late this year or early next year. Evergrande in March sold 10% of the company to 17 investors for $2.10 billion, at a pre-financing valuation of over 150 billion yuan ($23.48 billion).
Evergrande did not immediately respond to request for comment.
The world’s most indebted property developer, with more than $300 billion in liabilities, has been scrambling for funds to pay its many lenders as well as contractors.
It had hoped to spin off businesses including FCB and bottled water to raise funds to pay off its long list of debts.
On Tuesday, it was reported that founder Hui Ka Yan has been freeing up funds from the sale of luxury assets including art, calligraphy and two high-end homes in Hong Kong.
The Wall Street Journal reported earlier this month Evergrande raised more than $50 million by selling two of its private jets to American aircraft investors.
• Reuters with additional editing by Jim Pollard
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