Country Garden Holdings Co. aims to issue HK$270 million ($34.4 million) of new shares, as the distressed developer tries to pay off money it owes to other companies.

The Foshan-based developer will issue about 350.6 million shares at HK$0.77 each, according to a statement to the Hong Kong stock exchange. The subscriber is wholly owned by Kingboard Holdings Ltd.

Country Garden won’t receive any cash from the proceeds, it said. The shares issued will be used to set off payments it owes to the subscriber.