![]() ![]() More specific details of the Wednesday discussions were not immediately clear.Įvergrande in July said would offer its offshore creditors asset packages that may include shares in two overseas-listed units in the debt restructuring plan, and was later said to be considering onshore assets as sweetener for the plan. ![]() The talks next week will be a face-to-face meeting between Evergrande and a group of its dollar bondholders who have signed confidentiality agreements to advance debt negotiations, one of the sources said.Ī virtual meeting of the two parties was held on Jan. The developer, which has $300 billion in total liabilities, told a Hong Kong court in November that it aimed to win creditors' approval for its debt restructuring proposals by as early as the end of February.Įvergrande did not immediately respond to Reuters request for comment.īloomberg first reported the meeting details. On Thursday, Fitch Ratings cut its growth forecast for China this year to 8.1 per cent still. Its $22.7 billion of offshore debt, including loans and private bonds, is deemed to be in default after it missed payments late last year. Evergrande strikes deal to meet Chinese bond payment, but foreign dollar investors still up in air. The market still needs some time to digest and to price this in.Once China's top-selling developer, Evergrande is now at the centre of the country's property crisis. “I think there be some negotiations between Evergrande and its lenders, so some sort of haircut is still possible. China Evergrande faces default test as bond coupons come due Investors protest missing payments on wealth management products Investors gather at China Evergrande's headquarters in Shenzhen. “Evergrande has tried its best to solve liquidity problems, but it’s a little bit difficult to gather enough capital to pay all the debt,” said Cliff Zhao, chief strategist at China Construction Bank International in Hong Kong. Before this week, Chinese borrowers had defaulted on 10.2 billion of offshore bonds in 2021, with real estate firms making up 36 of the total, according to data compiled by Bloomberg. An Evergrande bond due Mawill officially be in default if the company does not make good after a 30-day grace period for a missed coupon payment that had been due on Sept. (Bloomberg) - China Evergrande Group will face an initial interest payment deadline for two dollar bonds Tuesday, in the property giants first major test. The New York Times earlier reported that the developer made an interest payment, citing a person speaking on condition of anonymity. It still has nearly $338m in other offshore coupon payments coming due in November and December. “I only think they are buying time at this point,” the bondholder said.Įvergrande missed coupon payments totalling nearly $280m on its dollar bonds on 23 and 29 September and 11 October, beginning 30-day grace periods for each. The company’s 8.25 dollar note due 2022 climbed 6.7 cents on the dollar to 31.9 cents as. One bondholder said he maintained a negative outlook for the developer despite it making the coupon payment. Speculation that Evergrande may avoid a worst-case scenario helped lift its bonds and stock on Thursday. That still left them trading at discounts of more than 75% from their face value, with the 2023 bond yielding nearly 190%. Prices of the developer’s bonds jumped higher on Friday, with its 11.5% January 2023 bond surging more than 9%, and its 12% January 2024 bond up nearly 8% on the day, data from Duration Finance showed. Evergrande’s unfinished Taicang theme park.
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