Home » News: Evergrande Subsidiary Bond Holders Have Not Received Bond Interest | Default | Epoch Times

News: Evergrande Subsidiary Bond Holders Have Not Received Bond Interest | Default | Epoch Times

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[EpochTimesNovember092021](Epoch Times reporter Liu Yi comprehensive report) Some bondholders of Scenery Journey Ltd, a subsidiary of China Evergrande Group, still did not receive Saturday in the morning of Asian time Monday (8th) (5th) Interest on bonds due. The total amount of interest this time is US$82.49 million.

According to Reuters, two sources familiar with the situation disclosed the news to Reuters.

The “Wall Street Journal” reported on November 9th that China Evergrande is China’s largest junk-grade bond issuer, with nearly 20 billion U.S. dollars in USD bonds outstanding.

It is reported that Scenery Journey Ltd’s bonds are due in November 2022 with a coupon rate of 13% and bonds due in November 2023 with a coupon rate of 13.75%. These bonds should be paid semi-annually on Saturday. But bondholders did not receive it.

After Scenery Journey Ltd fails to pay interest on time, a 30-day payment grace period will be initiated. If the company pays the coupons due before the grace period expires, it will avoid default.

A spokesperson for Evergrande did not immediately respond to Reuters’ request for comment.

This is not the first time Evergrande Group has initiated a 30-day payment grace period without paying interest on US dollar debt on time.

Prior to this, Evergrande failed to pay on time the interest on debts of USD 83.5 million and USD 47.5 million that were due on September 23 and September 29, respectively.

Evergrande raised funds in late October before the grace period expired, and paid the interest on the two US dollar debts separately, avoiding the debt default.

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Reuters quoted an Evergrande bond holder as saying that although the company can pay interest, it remains negative on the company’s prospects. “I think they are just buying time.” The person said.

Evergrande is currently burdened with debts of more than 300 billion U.S. dollars. According to various sources, the Chinese Communist Party does not want to fund Evergrande through its difficulties. On the contrary, the Chinese Communist Party pressures Evergrande Chairman Xu Jiayin to use its own funds to solve the crisis.

According to news from Hong Kong 01 News on October 27th, the house at No. 10 B at Buli Path, Hong Kong was mortgaged to China Construction Bank (Asia) on October 19. Based on the mortgage limit of the company’s property holdings of about 40%, the mansion is estimated to be cashable About 300 million Hong Kong dollars.

The Wall Street Journal cited sources familiar with the matter on November 5 and revealed that China Evergrande Group raised more than US$50 million through the sale of two privately-owned planes last month to help it repay its debts.

According to documents from the Hong Kong Stock Exchange, China Evergrande sold Hengteng Internet stocks on November 4 and 5, and realized a total of approximately HK$717 million.

Although Evergrande sold these assets to repay its debts, it has been struggling to sell other assets to raise overseas cash. In October, the company abandoned its plan to sell a majority stake in its property management unit to another Chinese developer to raise US$2.6 billion, and it has been unable to sell its office buildings in Hong Kong.

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Editor in charge: Li Muen#

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