It also expects to default on the interest payment due on Feb. 12 for its 9% Senior Notes due April 2024.

"...(Such defaults) would have a significant material adverse effect on our business, operations and financial condition, including possibly insolvency or other forms of restructuring," the property developer said.

The company, which has been experiencing an increasing strain on its working capital amid China's property sector woes, said it is seeking financing and is working on generating sufficient cash flow to prevent the potential default.

(Reporting by Ayushman Ojha; Editing by Krishna Chandra Eluri)