Payment not made to some Evergrande bondholders

Some of heavily-indebted China Evergrande Group’s offshore bondholders had not received interest payment by the close of Asia business hours on Wednesday, three people familiar with the matter told Reuters. This marks the second missed dollar debt payment by the company this month.

The cash-strapped property developer was due to make a $47.5 million bond interest payment on its 9.5% March 2024 dollar bond on Wednesday. It had missed a previous $83.5 million payment last Thursday.

Evergrande’s silence on its offshore payment obligations has left global investors wondering if they will have to swallow large losses when the 30-day grace periods end for the coupon payments. A spokesperson for Evergrande did not have any immediate comment. Reuters was unable to determine whether Evergrande has told bondholders what it plans to do regarding the coupon payment due on Wednesday.