Chinese state-owned Yuexiu Property has pulled out of a proposed $1.7 billion deal to buy China Evergrande Group's ($EGRNF@US) Hong Kong headquarters building over worries about the developer's dire financial situation. The collapse of the talks for the sale is another setback for cash-strapped Evergrande, which has been scrambling to divest assets to repay creditors. With more than $300 billion in liabilities, it has already missed 3 rounds of interest payments on its international bonds. The deal for the sale of the building faltered after Yuexiu's board opposed the move over worries that Evergrande's unresolved indebtedness would create potential complications in completing the transaction smoothly. Evergrande bought the harbourside building in 2015, paying a record amount of price per square foot at the time. It financed the bulk of the transaction with securitized products, which means it would recoup limited cash from the sale of the building.
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