Evergrande debt crisis: default looms as another developer warns of trouble

The sprawling Chinese real estate company was due to make payments of about $148 million on the US dollar-denominated bond on Monday. It did not immediately respond to a request for comment Tuesday.

Evergrande is China’s most indebted company, with debts of $300 billion. He may have already missed the payments two more US dollar-denominated bonds, fueling speculation about whether the company could collapse. The first of those came on September 23rd, with Evergrande receiving a 30-day grace period — a deadline that is approaching.
without salvage or restructuring, it is rapidly heading towards default – an outcome that could send shock waves through Chinese markets and the broader economy.

The company’s problems are emblematic of a larger real estate crisis in China.

Evergrande’s latest deadline coincided with news from another developer, Sinic Holdings, on Monday that it will likely miss some bond payments due this year, amounting to $250 million. The principal payment and the last interest payment on these bonds are due next Monday.

“After carefully studying the liquidity, the company currently expects that it will not have sufficient financial resources,” she said on one of the exchanges. deposit.
On Monday, Fantasia Holdings, a Shenzhen-based luxury apartment development company Delinquent on some bond payments Last week, he said that two of its independent directors, Ho Man and Priscilla Wong Pui Sze, would resign effective immediately.
On the Hong Kong Stock Exchange depositBoth directors said they had “no disagreement with the board.” But the company revealed that Hu “expressed concern that he was not fully briefed on some critical matters for the company in a timely manner.”
fantasy Newspaper headlines After it was revealed that it defaulted on hundreds of millions of dollars in debt. This has exacerbated fears of worsening debt problems in the over-expanding Chinese real estate sector.
Those fears were exacerbated on Monday modern land, another real estate company, seems to be cracking. It demanded investors more time to repay the $250 million bond, saying it needed to improve “liquidity and cash flow management and avoid any potential default.”
Evergrande shares were suspended Last week amid reports that a rival Chinese developer was preparing to buy out its property management business. The stock has already collapsed 80% this year.

– Jill Desis and Laura He contributed to this report.

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