5 Jan 2022
China Evergrande Requests Payment Deferral for Inshore Bonds amid Rising Pressures
The Index Today
Disgraced property developer, the China Evergrande Group, has requested a six-month extension for the payment of inshore bonds amounting to $157 million, at a virtual meeting with bond holders scheduled to take place this weekend.
Evergrande’s flagship firm, Hengda, has attributed the deferral request to the “current operational status” of the cash-strapped company. It intends to request an extension from January 8th to July 8th, 2023, for the payments of redemption and coupons for the Hengda Real Estate Group. This comes in the aftermath of the company’s lapse in repaying $82.5 million of foreign interests despite the grace period that lasted for a month.
Additionally, as part of the virtual meeting’s agenda, Hengda would also be required to develop and adhere to a debt settlement plan in the event of a possible default in timely repayments.
These developments come in light of guarantees from Chinese authorities regarding Evergrande Group’s repayment of liabilities and their continued corporate commitment to their employees and customers.