China Evergrande leaves bondholders guessing if it will pay up
Al Jazeera
Its silence on its offshore payment dues has left global investors asking if they will have to swallow large losses.
China’s cash-strapped Evergrande Group has left its offshore bondholders guessing whether it would pay interest on a bond coupon due on Wednesday despite agreeing to settle debt with a Chinese bank in a $1.5bn stake divestment deal.
With liabilities of $305bn, Evergrande has sparked concerns its woes could spread through China’s financial system and reverberate around the world – a worry that has eased with the Chinese central bank promising to protect homebuyer interest.
Evergrande said in an exchange filing that it would sell a 9.99 billion yuan ($1.5bn) stake it owns in Shengjing Bank Co Ltd to a state-owned asset management company.
