Some Evergrande Bondholders Haven’t Received Coupons Due Oct. 11
(Bloomberg) -- Some holders of two China Evergrande Group U.S. dollar bonds with coupons due Monday said they had yet to receive payment, the latest sign of the property developer’s escalating debt crisis.
The investors said they hadn’t received the coupons on the indebted firm’s 9.5% note due 2022, and its 10% bonds due 2023 as of 5 p.m. in Hong Kong, requesting anonymity as they aren’t authorized to speak publicly. Together with the payment due on a third bond -- a 10.5% note due 2024 -- Evergrande’s combined interest due on Monday was about $148 million, according to data compiled by Bloomberg.
There is a 30-day grace period before any missed payment would constitute a default, according to at least one of the bond’s offering memorandum. There was no immediate response from Evergrande to a request seeking comment outside of business hours.
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