Property Developer Evergrande Avoids Default With a Last-Minute Payment, According to Chinese Media

Property Developer Evergrande Avoids Default With a Last-Minute Payment, According to Chinese Media

China Evergrande Group pulled back from the brink of default by reportedly paying a bond coupon before this weekend’s deadline, the latest twist in a months-long drama that has captivated global investors.



The company wired the $83.5 million payment and bondholders will receive the funds before Saturday, state-backed newspaper Securities Times said, citing “relevant channels”. A 30-day grace period for the bond coupon would have expired on Saturday after the firm missed the original payment date. An Evergrande representative declined to comment.



Speculation about a default has been swirling for months, stoking credit-market contagion among other cash-strapped developers and eroding confidence in a Chinese real estate market that by some measures accounts for more than a quarter of the economy.



The development suggests the embattled property developer may put a bigger-than-anticipated priority on dollar-bond obligations as it struggles to raise funds to meet payments owed to banks, suppliers and holders of onshore investment products. Financial regulators have encouraged Evergrande to take all measures possible to avoid a near-term default on dollar bonds, while focusing on completing properties and repaying individual investors.



“The payment looks like an attempt to kick the can down the road, given its tight liquidity