Evergrand bondholders go into darkness as important deadlines pass

Evergrand Real Estate Group Update

Investors in an EverGrand offshore bond say they have yet to receive the deeply monitored interest payments they had for Thursday, raising uncertainty over the unfolding liquidity crisis of the world’s most indebted property developer.

The New York midnight deadline for the 8.5 million payment was Thursday, or Friday afternoon in Hong Kong. Two people with direct knowledge of the matter said no payment was made in Hong Kong on Friday morning.

The property group, which has not made any statement about the payment, has a grace period of 0 days, which defaults before it can be formally paid.

Evergrand, which was widely expected to default for weeks, is at the center of an open storm over the health of China’s wider property sector as the government seeks to crack down on excess.

Global stock and commodity markets have been shaken this week ahead of the upcoming payment deadline, as traders signal the impact of the recession on a real estate industry that has anchored China’s economic growth for decades.

The developer, which faces a total liability of more than $ 300 billion, warned of the risk of default after a rare public reprimand in Beijing in August. Its debt 400bn fall in debt has helped boost higher yields across the Asian high-yield bond market, where it is one of the largest orrow recipients.

Dollar-denominated bond prices fell with interest on Thursday as investors expected a missed payment that would trigger the biggest restructuring process in China’s financial history. The note, which matured the following year, is currently trading at 33 0.33.

Many of Evergrand’s dollar bonds were trading around c0 cents against the dollar on Friday, indicating considerable trouble, as the company’s Hong Kong-listed shares fell as much as 7.7 percent, down from less than 80 percent this year. Shares of the company’s electric vehicle subsidiary fell as much as 22.7 percent.

“Whether it pays off or not, there will be no change in uncertainty,” said Michelle Lovey, chief executive of SC Lovey, a Hong Kong-based investment group. “[Unless there is] Some form of central intervention and significant liquidity [is added] In groups, there must be a restructuring.

Evergrand gave Asia Trading a glimmer of hope on Wednesday when it announced it had reached an agreement with onshore bondholders to pay separate interest on a Rainminbi-dominated bond on Thursday without giving specific details.

The company is facing other deadlines, including paying আগামী 245 million next Wednesday to mature in 20224. Its total outstanding debt in the international market is about ২০ 20 billion.

In China, Evergrand is fighting its obligations to retail investors in asset management products, who gathered last week at its Shenzhen headquarters to protest, as well as promises from suppliers and contractors across its hundreds of development projects in China.

“If offshore investors compromise more than 10 to 15 cents on the current trading price, I think people [will] Just go ahead, ”said an experienced investor in Chinese debt.

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