Heavily-indebted property developer China Evergrande Group has obtained more time to pay a defaulted bond, offering small relief to the company despite a widening debt crisis across the Chinese property sector, reports Reuters. News of the three month-plus extension came a day after Evergrande scrapped a deal to sell a 50.1% stake, worth $2.6 billion, in a property services unit that could have eased some immediate pressure on the firm.
Evergrande was once China’s top-selling developer but is now reeling under more than $300 billion of debt, prompting government officials to seek to reassure markets that the firm’s problems won’t spin out of control.
A deepening liquidity crisis, however, continued to reverberate across China’s property sector, with more default announcements, and many companies saw their bonds slip again on Thursday after they had rallied this week.
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