Evergrande default

China Evergrande misses another USD payment

Evergrande’s offshore bondholders did not get a due coupon payment by the close of Asia business day, despite the reports the cash-strapped developer sealed a $1.5bn deal to settle debt with a Chinese bank.

The world’s most indebted property developer has been scrambling to pay its suppliers, and warned investors twice in as many weeks that it could default on its debts.

Troubled Chinese conglomerate Evergrande Group missed paying bond interest due on Wednesday, its second unpaid offshore debt payment in a week, although the cash-strapped company is scrambling to meet its obligations in its home market.

China's largest real estate developer Evergrande Group didn't pay bond interest due this week - its second unpaid offshore debt payment, but the cash-strapped company is scrambling to meet its obligations in its home market.

The company, with a mounting debt over $305 billion, was due on Wednesday to execute a $47.5 million bond interest payment on its 9.5% March 2024 offshore bond, after having missed $83.5 million in coupon last week.

With debt burden equal to 2% of China's GDP, property developer has spooked the markets that its troubles could spread through the financial system around the world, though fears have eased somewhat after the central bank of China vowed to protect homebuyers' interests.

The Evergrande's silence on its offshore coupon payment obligations has, however, left bond investors doubting if they will have to take large losses when 30-day grace periods end for coupons that were due this and last week.

The structure of Evergrande Group and the lack of comprehensive data on the company's assets and liabilities make it hard to identify a more precise way of recovery.

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