Chinese authorities are calling on local governments to prepare for the potential collapse of the debt-laden real estate developer, China Evergrande Group. A report from The Wall Street Journal, citing government sources, said officials were told to prepare for a “possible storm.”

Authorities said local government agencies and state-owned enterprises were instructed to intervene only at the last minute if Evergrande did not manage its operations in an orderly manner. Local governments were also obliged to prevent anxiety and reduce the spillover effect on homebuyers and the wider economy.

Analysts said the warning may signal the government’s reluctance to bail out the company if it does end up in ruins. China Evergrande, China’s second-largest real estate developer, needs to pay $83.5 million in dollar-bond interest due on Thursday. This is on top of a $2 billion offshore bond and a $47.5 million dollar-denominated bond interest that is due next week.

If Evergrande does not pay interest within 30 days of the scheduled payment date, both bonds will default. China Evergrande has around $305 billion in liabilities. It is struggling to meet its debt payments, which have raised concerns about its future prospects.

The company has been met with financial challenges in recent months as Beijing tightened rules in the real estate sector to curb debt levels and speculation. Investors are worried that the company’s decline could spill over to creditors, including banks in China and abroad, resulting in billions of dollars in losses.