Type to search

China Evergrande Warns Of Non-Payment Over $260m Demand

Evergrande, with more than $300 billion in liabilities, has already failed to pay coupons worth $82.5 million as it stumbles from debt deadline to debt deadline


Evergrande Group HQ in Shenzhen
Evergrande has already failed to pay coupons worth $82.5 million due last month.

 

China Evergrande has received a demand under a $260 million guarantee obligation, the company said on Friday, admitting it may be unable to repay due to the liquidity crisis gripping China’s property sector.

Repayment dates under certain other agreements may be pulled forward if it was unable to meet the obligation, the company warned.  

Evergrande, once China’s top-selling developer, has already failed to pay coupons totalling $82.5 million due on November 6 as it stumbles from debt deadline to deadline and grapples with more than $300 billion in liabilities.

The company planned to actively engage with creditors to come up with a plan to deal with its offshore debts, Evergrande said on Friday. 

The developer said there was no guarantee that it would have sufficient funds to continue to perform its financial obligations.

 

  • Reuters with additional editing by Sean O’Meara

 


 
Read more:

Kaisa In Last-Ditch Talks With Bondholders As Default Looms

China Firms Scramble to Divest Property Units Amid Crackdown

 

Sean OMeara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

logo

AF China Bond