HONG KONG : Several bondholders of China Evergrande Group have received coupon payments from the heavily indebted property developer, Chinese media outlet Cailianshe reported on Thursday, easing concerns about a potentially destabilising default.
The report cited several bondholders saying they have received interest payments of the three bond tranches that had a total of more than US$148 million in interest payments due last month but which had a grace period that ended Wednesday. Evergrande, the world's most indebted developer, has been stumbling from deadline to deadline in recent weeks as it grapples with more than US$300 billion in liabilities, US$19 billion of which are international market bonds.
A failure to pay would have resulted in a formal default by the company and trigger cross-default provisions for other Evergrande dollar bonds, exacerbating a debt crisis looming over the world's second-largest economy.