HONG KONG, (Reuters) – Shares in Chinese property developer Shimao Group Holdings dropped 5% on Tuesday morning after the company denied a report by media that it had entered into a preliminary deal to sell a Shanghai plaza.

Shimao stated in a filing that it was in discussions with potential buyers. It may also consider selling some properties to lower its debt.

After missing 645 million Yuan ($101.10 Million) of its promised payment, the Shanghai-based developer declared it had defaulted on a trust loan.

Caixin reports that Shimao struck an agreement with a state-owned firm to sell the Shimao International Plaza Shanghai for over 10 billion Yuan.

It was reported that the firm had sold all its real-estate projects including residential properties and commercial properties. The company is also in negotiations with China Vanke about disposing of assets.

Shimao stated in the filing that it had no outstanding assets-backed securities (ABS), due or payable as of Tuesday.

Reuters last week reported that Shanghai Shimao Construction, a unit of Shimao Group, has requested extensions in maturities to two ABS due next month. They are worth 1.17 billion yuan.

After a gain of 19% during the previous session, Shimao shares dropped by 3.6% as of 0156 GMT

Rating agencies S&P and Moody’s (NYSE:) cut Shimao’s credit rating again on Monday after the firm unexpectedly defaulted on a trust loan last week.

($1 = 6.3715 renminbi)