Report: Struggling Chinese developer makes bond payment

An official Chinese newspaper says a troubled developer whose struggle to avoid a multibillion-dollar debt default is rattling global financial markets has wired $83.5 million to make an overdue payment to foreign bondholders

BEIJING -- A troubled Chinese developer whose struggle to avoid a multibillion-dollar debt default has rattled global financial markets wired $83.5 million on Friday to make an overdue payment to foreign bondholders, a government newspaper reported.

Evergrande Group's struggle to reduce its 2 trillion yuan ($310 billion) of debt to comply with tighter official curbs on borrowing has prompted fears a default might trigger a financial crisis. Chinese officials have tried to ally investor fears by saying the debt problems can be controlled and there should be no impact on the financial industry.

Evergrande wired money on Friday to a Citigroup account for a bond payment that was due Sept. 23, the Securities Times reported, citing unidentified sources.

Evergrande missed payments in late September and early October to investors in U.S. dollar-denominated bonds issued abroad. The company said Wednesday a 30-day grace period to make those payments before it would be declared in default had yet to expire.