A Chinese government-owned property management firm has agreed to buy troubled real estate developer Evergrande Group’s nearly 20 percent stake in Shengjing Bank Company for $1.5 billion. Some of the proceeds from this transaction will be used to settle outstanding loans on the bank, Reuters reported.

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Despite netting a new stream of cash flow through the deal, Evergrande could not come up with the money in time to meet payments on $47.5 million worth of bond interest by the end of the Chinese trading day on Wednesday. It remains unknown whether payment can be settled during US business hours.

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Evergrande has more than $300 billion in debt, of which $88.5 billion is in debt. Earlier this month, uncertainty surrounded the status of Evergrande’s ability to pay $83 million by the September 23 deadline. Evergrande remained silent about the payment, but creditors said the money had not been received.

If it can’t afford its debts, Evergrande, which stands out as China’s second-largest real estate developer, could default. The firm claims that it supplies about 3.8 million jobs to China annually. Investors anticipate that a collapse would, at least, cause severe financial bleeding on the institutions it works with.

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Under the new transaction, Evergrande’s 34.5 percent stake in the firm will be reduced to 14.6 percent, wall street journal Reportedly, the state became the largest investor in Shengjing Bank.

In a regulatory filing on Wednesday, Evergrande said, “its liquidity issue has materially adversely affected Shengjing Bank.” By freeing itself from Evergrande control, the bank hopes to achieve greater stability within its operations.

As its debts grew, Evergrande was unable to meet the minimum amount of debt owed to the small businesses that service its properties.

An advisor hired by an advisor to Evergrande said, “The clock is starting to tick on the restructuring process. The company needs to do something, it is clearly struggling with liquidity… the liquidity issue is down the house of cards.” brings.” Offshore bondholders told Reuters. “We are in a wait-and-see phase at the moment. Creditors are organizing themselves and people are trying to figure out how to get hold of this falling knife.”