By Gina Lee

Investing.com – China Evergrande Group (HK:) shares . The developer continues to suffer losses ahead of an imminent deadline for paying its obligations. Investors don’t believe that the company will be able to pay.

‘The company’s Hong Kong shares tumbled 16.93% to HK$2.11 ($0.27) by 12:39 AM ET (4:39 AM GMT). Shares in its property management unit, Evergrande Property Services Group (HK:), slid 12.61% to HK$4.02. HengTen Networks Group Ltd. (HK:), the movie streaming company majority-owned by Evergrande, saw its shares slump 13.79% to HK$2.

It is unclear whether China Evergrande has the ability to pay $83.5 million in interest due on Thursday for its March 2022 bonds. A second payment of $47.5million interest is due Sept. 29 for the March 2024 bonds.

Failure to pay the required payments in 30 days would result in the bonds going into default.

China Evergrande has struggled to raise funds to pay creditors, suppliers and investors. Regulators have already warned that the company’s $305 billion in liabilities could spread broader risks to China’s financial system if it is not stabilized. The possibility of the government bailout being implemented is not likely as major lenders are told by authorities to continue rolling over loans or extend their interest payments.

According to four bank executives, one main lender already has provisions made for losses in a part of the loans it made to China Evergrande. However, some creditors have plans to extend their timeframes to make repayments.

According to the company, investors have begun receiving repayments in relation to its wealth management and real estate products.