Evergrande Misses Bond Payment Due Date; Scrambles to Reduce Debt
The Chinese real estate developer is offloading a 20% stake in Shengjing Bank, to raise $1.5 billion of the $305 billion Evergrande owes creditors. Read the full article by: Macauley Peterson
Key Points:
Evergrande is still underwater as they have missed their deadline to pay a $47.2 million bond interest payment. They still have 30 days from today before they default. CNN reported that $20 billion of their debt is from international bonds.
Evergrande has taken to selling some of their assets to pay off their $300 billion debt. The company sold their shares of Shengjing Bank for about $1.5 Billion to pay some of it back.
China has been almost forcing its state owned companies like Shenyang Shengjing Finance Investment Group, to buy assets from Evergrande to help contain the issue to some degree.
“We are in the wait and see phase at the moment. The creditors are organizing themselves and people are trying to figure out how this falling knife might be caught,”an unnamed advisor to an offshore Evergrande bondholder told Reuters.
