The real estate company is sitting on a mountain of debt worth $ 300 billion.
(Photo: Reuters)
Hong Kong The ailing Chinese real estate company China Evergrande has apparently made another payment due. As the “New York Times” reported on Thursday (local time), citing a person familiar with the matter, the company paid the interest due on Friday, October 29, and thus averted another default.
This is a coupon payment of $ 47.5 million, which was actually due on September 29 for a bond. The grace period would have expired this Friday. The payment came after Evergrande narrowly averted a costly default last week by transferring $ 83.5 million in coupon payments to an escrow account.
Evergrande is sitting on a mountain of debt equivalent to around $ 300 billion. In view of the size of the liabilities, the financial markets were recently worried that a collapse of the group could trigger a conflagration in the Chinese real estate sector. Failure to pay the interest could have resulted in a formal default by the company and default on other Evergrande dollar bonds.
More: The Evergrande case is also a lesson for investors
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