China Evergrande will make crucial bond payment to avert looming default – reports

Thu 21 Oct 2021 22.29 EDT. The troubled property company China Evergrande Group has come up with the money to pay a $83.5m bond interest payment that it missed in September, according to reports. The company, which has debts of around $305bn, wired the $83.5m payment and noteholders will receive it before Saturday, China's state-backed newspaper Securities Times said on Friday, citing relevant channels, according to Bloomberg. China's Evergrande crisis: clock ticking as crucial debt default deadline looms. "But still, Evergrande does need to restructure its debt. This payment might be a way for them to get some sort of buy-in with stakeholders before the heavy work needed on the restructuring." The news would boost bondholders' confidence, he said, as "There are many coupon payments due ahead. If Evergrande pays this time, I don't see why it won't pay the next time". Non-payment of interest for 30 days would result in a formal default by the company, and trigger cross-default provisions for other Evergrande dollar bonds. "In an announcement about the failed asset sales on Wednesday, Evergrande did offer a clue about the bond repayment. It noted pointedly that the group"has a 30-day grace period to pay interest after the interest becomes due under its US dollar-denominated notes" and that the grace periods "have not expired'.