Evergrande Narrowly Avoided Default Making Coupon Payment Due on Friday
Evergrande once again avoided default at the last minute signaling the company is just buying time
China Evergrande Group (3333.HK) narrowly avoided default paying coupon payments on its offshore bond before the end of the grace period on Friday, according to reports made by Reuters.
The real-estate moghul were to pay $47.5 million coupon due on Friday. Last week in a similar manner the company avoided default on its offshore bond paying $83.5 million at the last minute.
Missing on coupon payment deadline would have lead to a cross-default of $19 billion offshore bonds on its books, marking one of the largest corporate debt default in today’s time.
Reuters reported source of fund yet unknown, however earlier last week Bloomberg reported Chinese government asked chairman of the group Hui Kan Yan to meet the group’s debt obligation with his personal wealth.
The company’s stock in the Hang Seng Stock Exchange is trading at $2.390 inching down by 0.83% while the Hang Seng Property Index lost 73.94 points down by 0.24%.
