There is growing concern that Country Garden’s liquidity crisis could spill over to China’s wider economy and even spill over internationally, as the troubled real estate giant seeks to avoid default.

According to a stock exchange filing, the Foshan, Guandong-based company plans to issue 350 million shares at HK$0.77 ($0.10) each to pay off loans it owes a creditor. There would be a total value of $270 million ($34.4 million) for the shares.

According to the filing, Country Garden will not receive any cash from the transaction. It will use the stocks to pay off Kingboard Holdings, a Hong Kong-based laminate manufacturer, with the money it owes.

As it attempts to raise money and reassure investors, the real estate company, which was the largest residential property developer in China last year, is taking fresh steps to avoid default.

It said Monday that its $100 billion Malaysian project, its largest overseas development, was “operating normally,” and that its operation was “safe and stable.” A brief lift in Country Garden’s shares in Hong Kong followed the announcement and China’s latest policy measures to support the property sector.

A deadline for bondholders to vote on whether to extend repayment on 3.9 billion yuan ($530 million) bonds has been moved from August 25 to August 31.

A report on Country Garden’s first-half earnings is expected later on Wednesday. In the report, investors will pay close attention to how the company will deal with its debt problems and how its cash flow will be affected.

This month, Country Garden’s financial troubles have been prominent as it faces a cash crunch. As Beijing tries to rescue the ailing sector, which plays a crucial role in China’s economic growth, investors fear that the company’s debt default would further damage investor confidence.

A report that the company missed two dollar bond payments earlier this month shocked the market, since it was considered the largest surviving developer during the crisis.

On August 10, Country Garden acknowledged that it was facing its “biggest difficulty” since its founding in 1992, citing deteriorating sales and a difficult refinancing environment. For the first half of this year, the company forecasts a loss of $6.2 billion to $7.6 billion.

A debt restructuring was expected to begin soon, according to Chinese state media at the time.