Several of embattled property developer China Evergrande’s bondholders have said they are yet to receive critical interest payments after the expiry of a 30-day grace period on Monday, another step towards a default for the struggling company, reports the Financial Times. Evergrande, which has pushed back several international bond payments in recent months after a liquidity crisis forced it to battle for its survival, had $82.5 million in coupons due on Monday—days after it signaled the need to restructure its debt.
One investor with a stake in the bonds, who asked to remain anonymous, said he had not received any funds as of early afternoon Hong Kong time on Tuesday, and was awaiting an announcement over the coming days confirming whether the payment had been made. “I think it’s unlikely they will have paid, but it’s possible,” he said, pointing to delays in the processing of bond payments.
Another employee of a US asset manager told the Financial Times no payments had been received on Tuesday. Missed deadlines this week could trigger an official default for Evergrande, months after its initial failure to make an interest payment in late September sparked volatility across global markets.
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