![]() ![]() ![]() Non-payment by Kaisa would push China's largest issuer of offshore debt among developers after Evergrande into technical default, triggering cross defaults on its offshore bonds totalling nearly $US12 billion.Įvergrande did not respond to Reuters' request for comment. However, with $US300 billion of debts and other liabilities, it is now at the heart of a property crisis in China this year that has crushed almost a dozen smaller firms.Īdding to the crisis in China's once-bubbling property market, smaller developer Kaisa Group Holdings was also unlikely to meet its $US400 million offshore debt deadline on Tuesday, a source with direct knowledge of the matter said. "From our point of view, it has been a question of when, not if the scale of the interest payments and then early next year redemption payments has made this seemingly inevitable," said one bondholder, who declined to be named.įailure by Evergrande to make $US82.5 million ($116 million) in interest payments due last month would trigger cross-default on its roughly $US19 billion of international bonds and put the developer at risk of becoming China's biggest defaulter.Įvergrande was once China's top property developer, with more than 1,300 real estate projects. No-one who invested in two bonds - issued by China Evergrande Group's unit Scenery Journey Ltd - had received payment as of 1am AEDT on Wednesday, a source familiar with the situation told Reuters.Īnother four sources holding the bonds confirmed to Reuters that they had not received payment.Īll declined to be named because they were not authorised to talk to the media.Įvergrande has not issued any communication to bondholders about the missed payment, one of the five sources said. Evergrande did not make payments on some $US bonds at the end of a month-long grace period, sources familiar with the situation told Reuters, setting the stage for a massive default by the world's most-indebted property developer. ![]()
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