Evergrande staves off second default in a week by paying US$45.2 million in overdue coupon before grace period runs out
- Evergrande paid US$45.2 million of coupon due on its 9.5 per cent, US$951 million bond that matures on March 29, 2024, according to sources
- Evergrande missed the payment on September 29, and was given 30 days to comply before bondholders are entitled to declare it in default
China Evergrande Group has staved off a potential default for the second time in a week, after paying an overdue offshore bond coupon before a 30-day grace period runs out.
The Shenzhen-based developer paid US$45.2 million of coupon due on its 9.5 per cent, US$951 million bond that matures on March 29, 2024, according to people familiar with the matter. Evergrande missed the payment on September 29, and was given 30 days to comply before bondholders are entitled to declare it in default, a move which could trigger cross defaults across all its offshore debt, and in the worst case set the stage for creditors to petition for its liquidation.
Everegrande’s spokespeople did not respond to the Post’s requests for comment.
Separately, the company’s wealth management unit paid the first 10 per cent of redeemed financial product before its October 30 deadline, according to investors.