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Evergrande Unit Seen Missing Payments on Offshore Bonds

 

Some holders of US dollar bonds issued by China Evergrande Group‘s unit Scenery Journey Ltd have not received interest payments due on Saturday by Monday morning in Asia, two people familiar with the matter said.

The company was due to make semi-annual coupon payments on Saturday worth a combined $82.49 million on its 13% November 2022 and 13.75% November 2023 bonds.

Non-payment of interest by November 6 would have kicked off a 30-day grace period for payment. The company has narrowly averted defaults by paying previous coupons just before the expiration of their grace periods.

One such period expires on Wednesday, November 10, for more than $148 million in coupon payments that had been due on October 11.

A spokesperson for Evergrande did not immediately respond to a request for comment. The sources could not be named as they were not authorised to speak to the media.

Reuters was unable to determine whether Evergrande has told bondholders what it planned to do regarding the coupon payment due on Saturday.

 

  • Reuters with additional editing by Jim Pollard

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The post Evergrande Unit Seen Missing Payments on Offshore Bonds appeared first on Asia Financial.

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