China property developer Goldin Financial Holdings Ltd. will sell new shares to raise up to HK$1.38 billion ($178 million), according to a filing with the Hong Kong exchange Sunday.

Goldin Financial said it had secured at least six cornerstone investors.

Goldin Financial's liabilities were around HK$18 billion as of June 30, according to its annual accounts published this month. This is more than its cash reserves which were reported at HK$23 million. The company's cash reserves as of the end of 2019 were HK$2.4 billion.

"The net proceeds from the placing are intended to be used for repayment," the company's chairperson Pan Sutong said. The billionaire said his stake would be reduced from 70.86% to 59.05%. Goldin Financial plans to sell 1.39 billion new shares at HK$1 each. This represents a 3.47% discount over the company's share price average for the last five trading days up to Sept. 28, it said.

The proceeds will mostly be used to help the company settle debts while the rest will be used as general working capital. The company's creditors had previously launched campaigns in an attempt to force it to pay its liabilities.

These included the attempted sale of its corporate headquarters in Kowloon Bay in September. Receivers and managers of the company's headquarters reached a deal with Knight Frank, which agreed to become the sole agent to seek a potential buyer. The 28-story Goldin Financial Global Center, appraised as a grade-A office building, was expected to fetch at least HK$12 billion.

On Sept. Goldin Financial said it had entered into a provisional sale-and-purchase agreement for the building valued at around HK$14.3 billion. The sale was blocked after the building's appointed receivers and managers claimed the company no longer had any rights to sell the property.