Saturday, October 16, 2021
Evergrande Strikes Debt Deal
9/22/2021 1:34:53 PM

Embattled Chinese real estate giant Evergrande said it has struck a deal with one of its lenders over a bond interest payment due on Sep. 23 to avoid defaulting on more liabilities.

In a statement filed with the Shenzhen Stock Exchange on Sep. 22, Evergrande's property unit Hengda announced that it has settled through "private negotiations" a payment for its domestic 2025 bond, estimated at around $35.9 million.

However, the statement did not mention how much Evergrande will pay or when.

Evergrande also did not mention a $83.5 million payment for an overseas bond similarly due on Sep. 23.

With one of Evergrande's obligations seemingly resolved, U.S. stock futures opened with a 0.5 percent gain while the yuan and European indices rose.

Sources told Bloomberg that Evergrande had missed payments due on Sep. 20 to two of its largest lenders as more deadlines loom over the indebted company.

Evergrande has been struggling to find cash to pay for its debts of more than $300 billion, triggering fears that defaults may cause contagion across the Chinese economy and global markets.

Courtesy: Fourth Estate

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