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Ever Grande Pays Interest To Foreign Investors And Avoids Collapse

Evergrande made a key interest payment on a dollar-denominated bond just a day before the grace period expires, allowing the Chinese builder to avoid bankruptcy, at least for now, Chinese state media reported.

The state financial daily Security Times announced today that this troubled real estate conglomerate paid 83.5 million dollars in interest on a bond denominated in dollars, which fell due last month, CNN reports.

News of the interest payment will bring relief to investors and regulators worried about the wider possibility of bankruptcy in global financial markets, reinforcing the reassurance of Chinese officials who claim that the interests of creditors will be protected.

However, the second largest real estate company in China, burdened with obligations of 300 billion dollars, will have to pay through other obligations whose deadline expires on October 29, and it is not known whether it can pay those obligations.

“There’s no point in paying this installment if you don’t intend to pay the next one in six days, but given the cash flow difficulties the company itself has acknowledged, it’s not clear how long they can last like this,” said Travis Lundy, an analyst at Quiddity Advisors. from Hong Kong, Reuters reports.

 

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