State-owned company Yuexiu Property withdrew from a proposed $1.7 billion deal to buy China's Evergrande Group's headquarters in Hong Kong.
The deal was broken by Yuexiu company's board of directors' concerns that the still unresolved financial woes of Evergrande could prevent the sale process from completing smoothly, two sources said.
The interruption of negotiations for the sale of the historic building has been another problem for Evergrande, who is in a cash strait and is trying to sell off some assets to pay off debts to creditors knocking on its door. The company, which has more than $300 billion in debt, has so far missed three rounds of interest payments on its international bonds.
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