China Evergrande Group has now divested its entire stake in the streaming service company HengTen Network Group. The cash-strapped company is expected to raise around $273.5 million from the transaction - capital that it can use to prevent defaults on its mounting debts.

The company announced Thursday that it expects to incur a loss of around $1.09 billion from selling its 18% stake in the streaming company. Tencent is currently one of the company's largest shareholders with a 20% stake.

China Evergrande said it had reached an agreement with Allied Resources Investment Holdings Ltd. The company owned by investor Li Shao Yu agreed to buy China Evergrande's 1.66 billion shares in HengTen for HK$1.28 each.

The price of the deal represents a 24% discount on the company's closing share price as of Wednesday. Evergrande stated that 20% of the deal value would be paid within five business days after the agreement's signing, with the remaining amount will be paid within two months.

China Evergrande's shares dropped by 2.5% Thursday, while HengTen's shares surged by more than 22.5%. HengTen is one of China's largest streaming services, producing its own films and television shows. The company has been described by some as China's answer to Netflix.  

The sale of its stake in the streaming service comes as China Evergrande struggles to keep up with its debt payments. The world's most indebted real estate developer is estimated to have more than $300 billion in liabilities, including $19 billion worth of international market bond payments.

Evergrande narrowly avoided a destabilizing default last week with a last-minute bond payment, but the respite did nothing to relieve the country's larger property sector's liquidity woes.

Evergrande has payments due on December 28 totaling more than $255 million. It is being pressured by its domestic creditors, and a suffocating financial crunch has disrupted its hundreds of residential projects.

Sources with knowledge in the matter said Chinese officials had asked Evergrande chairman, Hui Ka Yan, to use part of his own money to help pay bondholders. The source added that the company's founder has already sold off some of his high-end assets such as art, calligraphy, and three high-end houses.

As the offshore bond market's liquidity dries up due to the coronavirus pandemic, other Chinese property developers are increasing divestments and share sales to cover losses.

Country Garden Services Holdings, the property services business of developer Country Gardens, is offering 150 million additional shares, or 4.5% of the expanded capital, to raise $1.03 billion.

The selling price of $6.85 per unit is a 9.5% decrease from the previous trading day's price. Country Garden Services claims that it plans to use the funds for further acquisitions and new business growth.