Shares in embattled Chinese property developer Evergrande plummeted Monday, following the announcement that it would be unable to carry out a restructuring plan intended to guarantee its survival.
The company collapsed more than 25 percent by the break, underscoring market concerns as China's property sector faces an unprecedented crisis.
On Sunday evening, Evergrande announced that it was unable to issue new debt as its subsidiary, Hengda Real Estate Group,"is being investigated". That came two days after the company said meetings on the restructuring scheduled for Monday and Tuesday would not take place, saying it was"necessary to reassess the terms" of the plan in order to suit the"objective situation and the demand of the creditors".
Evergrande's enormous debt has contributed to the country's deepening property market crisis, raising fears of a global spillover.