Struggling property developer China Evergrande Group faces an interest payment deadline for two dollar bonds on Tuesday, the first such deadline since the company was placed in default by international ratings agencies earlier this month, reports Bloomberg. The embattled firm has $50.4 million worth of coupon due on a 7.5% 2023 bond and another $204.8 million tied to a 8.75% 2025 note, according to Bloomberg-compiled data. Evergrande has a 30-day grace period to deliver the payments before a default can be declared.
The imminent debt obligations come after major international rating firms formally described Evergrande as a defaulter earlier this month, following a series of payment failures on dollar notes. The developer said last week that a newly established risk-management committee is utilizing its extensive resources to defuse risk and protect the interests of all parties.
China’s central bank governor said earlier this month that Evergrande’s debt woes will be dealt with in a market-oriented way, signaling Beijing’s reluctance to bail out the firm as it strains under more than $300 billion in liabilities.