China Evergrande (3333) yesterday pledged to establish a risk management committee as its shares plunged 19.6 percent on fears that it would default on bond payments due yesterday.

The embattled developer said in a regulatory filing that its chairman, Hui Ka-yan, will also act as the chairman of the committee and Liu Zhihong, deputy general manager of the state-owned Guangdong Holdings, will act as the co-chairman.

Evergrande said in a filing late Friday that it plans to "actively engage" with offshore creditors on a restructuring plan, offering its most explicit acknowledgment yet that its US$300 billion (HK$2.34 trillion) of overseas and local liabilities have become unsustainable.

Meanwhile, shares of Sunshine 100 China (2608) plummeted 87 percent before it closed 14 percent lower yesterday as it announced default of debt.

Sunshine 100 said earlier that it won't be able to repay the US$170 million of principal and more than US$8.9 million of interest on its 10.5 percent senior notes due 2021. The company said in August that it wasn't able to repay the principal, premium and accrued interest of its 2021 bonds. Its default will also trigger provisions under some other debt instruments.

Another developer Fantasia (1777) said it will take two to three years to fix financial issues, adding that it has identified 95 percent of overseas creditors and two domestic bonds' maturity have been extended.

Separately, Logan Group (3380) plans to have a rights issue to raise HK$1.17 billion, according to a term sheet. The shares will be offered at HK$ 6.8 apiece, a 9.9 percent discount compared to the closing price of HK$7.55 yesterday.

Unfinished residential buildings at Evergrande’s Health Valley development on the outskirts of Nanjing. BLOOMBERG

Evergrande a step closer to the brink