• Directory of Taiwan

Evergrande misses big payment deadline for overseas bondholders

Company prioritizes repayments to Chinese investors amid fears of unrest

The Evergrande headquarters (left) in Shenzhen.

The Evergrande headquarters (left) in Shenzhen. (AP photo)

TAIPEI (Taiwan News) — Evergrande was supposed to pay foreign bondholders NT$1.32 billion ($US47.5 million) by Wednesday (Sept. 29), but the money has not come through.

As the deadline passed, sources told Reuters that offshore Evergrande bondholders had not received any money nor communication on the matter. Under its investment terms, the firm still has a 30-day grace period before the missed payments are declared a default.

Evergrande has not issued a statement on the issue as yet. The crisis-stricken Chinese real estate behemoth, once China's top-selling developer, now faces debts of more than $US300 billion.

In a desperate bid to stave off bankruptcy, it has been prioritizing resolving its liabilities within China, amid fears the crisis could spark widespread social unrest, according to a BBC report. The company made a 10% repayment of wealth management products — largely owned by Chinese retail investors — that was due by Thursday (Sept. 30).

Updated : 2021-11-30 05:49 GMT+08:00