Evergrande Reportedly Makes Last-Minute Interest Payment on Dollar Bonds

China Evergrande Group reportedly avoided a default on a bond interest payment it missed in September, paying off the debt just a day before the end of a 30-day grace period.

Local Chinese media reported that the embattled property giant had paid an overdue $83.5 million interest payment to an international creditor on Oct. 22. Evergrande, however, did not issue any statement or regulatory filing regarding the reported payment.

The firm missed the interest payment’s original deadline on Sep. 23, triggering a grace period that would have expired and resulted in a default on Oct. 23.

Evergrande shares in Hong Kong jumped to as much as 7.8 percent after news broke that the firm has paid off one out of four dollar notes due this year, but analysts warned that uncertainties remain with more than $300 billion still in debt.

The firm’s “debt woes will still linger especially since its asset sales efforts to raise funds or deleverage haven’t been quite successful, as would-be buyers calling off purchases/negotiations are simply just waiting for better prices,” analyst Derek Tay, Kamet Capital Partners, told Bloomberg.

Real estate firm Hopson Development Holdings announced on Oct. 20 that Evergrande canceled selling its property management unit which would have raised $2.6 billion to cover some of the latter’s debt.

© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.