China’s second-largrante, China’s second-largrant, approached the possibility of default on Friday after failing to meet payment deadlines.
This shows that the company is in a very troublesome situation and investors are now horrifying.
Evergrande is burdened with over $300 million and appears to be in short supply of cash. Investors are now concerned about China’s financial system and the outcomes around the world.
The specific deadline, which Evergrande was to pay $83.5 million in bond interest, is gone, with little comment from developers.
Bondholders have not received or were not paid, Reuters reported.
Evergrande enters a 30-day bounty period. If payment fails, the default will be made.
“We are pleased to announce that we are committed to providing Asian bonds with a focus on the company’s efforts to ensure that we are committed to providing financial assistance to our customers.”
“There is no precedent for this in the size of Evergrande. Before China goes on vacation, we have to see how this unfolds over the next 10 days or so.”
China’s central banks are making an effort to stimulate the banking system. However, there have been no comments from officials or state media regarding the latest information on the situation.
