Chinese authorities have told local officials to prepare for a potential demise of heavily indebted property developer Evergrande, the Wall Street Journal reported on Thursday.

The WSJ reported that local officials described Chinese authorities’ signals as “getting prepared for the potential storm”. They said they were told by the government to wait until the very last moment and not intervene in the event of Evergrande’s death.

Even with all the implications for the world, this report shows that there may be a small amount of interest from the government to bail out the company. In recent weeks, Evergrande’s inability to pay interest has been a cause of market sell-offs all over the globe.

On Wednesday, the company paid a local bond. This helped to improve Asian markets. It is not clear if the company will be paying interest on Thursday for its offshore bonds.

Bloomberg reported on Thursday that authorities in Beijing told the company not to default on those dollar-denominated interest payments.

Evergrande was a large conglomerate that flourished during the debt-driven building boom in China. Beijing is concerned about Evergrande’s corporate debt. China has also put restrictions on lending. These are due to declining housing demand and the high levels of corporate debt.

Read more about this story at the Wall Street Journal.