Some of the heavily-indebted China Evergrande Group’s bondholders received a late interest payment just before the expiry of a grace period, giving the debt-stricken developer more time as it seeks to raise funds through asset sales, reports Bloomberg.
Several holders of the 9.5% dollar note maturing in 2024 received notification they had been paid on Thursday, people with knowledge of the situation told the SCMP. Evergrande skipped an interest payment due September 29, starting the clock on a 30-day grace period before investors could declare a default. This is the second time this month that the debt-stricken property developer avoided default.
The latest payment to international bondholders comes amid a selloff in Chinese junk bonds that was paced on Thursday by Kaisa Group, one of the property sector’s largest issuers of dollar debt.