China Evergrande to make crucial bond payment to avert impending insolvency

China Evergrande to make crucial bond payment to avert impending insolvency - the struggling real estate giant has transferred $ 83.5 million to its creditors, Chinese media say, but delays are looming for an additional $ 193 million from payments. made a crucial bond payment. China Evergrande is headquartered in Hong Kong, where its shares rose after announcing it made a crucial bond payment. with the money to pay a $ 83.According to reports, the bond interest payment of $ 5 million he lost in September, according to reports. The company, which has approximately $ 305 billion in debt, made the payment of $ 83.5 million and bondholders will receive it before Saturday, the state Securities Times newspaper reported on Friday, citing channels. concerned, according to Bloomberg. Evergrande crisis center building in Shanghai, China: time is running out as the crucial deadline for default looms. source could be a way for them to get some sort of agreement with the interested parties before the heavy work involved in restructuring.Evergrande, which is China's second-largest real estate developer, sounded the alarm bells in global financial markets when it announced in September that it might not be able to pay its many creditors, ranging from homebuyers to contractors. under construction, through banks and foreign investors. He missed the repayment of the $ 83.5 million bond on September 23, but had a 30-day grace period to get the money. He then missed payments worth an additional $ 193 million on September 29 and October 11. They also gave a 30-day grace period for the payment. An announcement this week that a deal to sell a 50.1% stake in its real estate services arm for $ 2.6 million had fallen amid growing fears of default. He also failed to sell his Hong Kong office for $ 1.7 billions. A number of Chinese officials have tried in recent days to reassure investors, saying the interests of creditors will be protected. However, market participants expressed shock at the news of the payment. “It's a positive surprise,” said James Wong, portfolio manager at GaoTeng Global Asset Management, adding that many expected default. The news would boost bondholder confidence, he said, because "there are a lot of coupon payments due up front. If Evergrande pays this time, I don't see why it won't. pay next time ". 30 days would result in a formal default by the company and trigger cross-default clauses for other Evergrande dollar bonds. Financing for the duration. Evergrande shares rose around 4%, a day after trading resumed after being suspended for more than two weeks pending news of a sale of scrapped shares in its unit. asset management. Ownership: The Mainland Hang Seng property index rose more than 5% at the start of the session, from 0.The larger Hang Seng index 13% increase. In an announcement on the sale of bankrupt assets on Wednesday, Evergrande offered a hint on the bond buyback. He clearly noted that the group "has a 30-day grace period to pay interest after interest becomes due under its US dollar denominated notes" and that the grace periods "have not expired. ". However, in the same statement, it repeated an initial public listing in September that it was struggling under the weight of its massive debt, caused by the loss of funding sources and the rapid cooling of the housing market. "Given the difficulties, challenges and uncertainties associated with improving its liquidity, there can be no assurance that the group will be able to meet its financial obligations under financing documents and other relevant contracts," the statement said. … As you join us. from Romania, we have a little favor for you. Tens of millions of people have trusted the Guardian's high-impact journalism since we published 200 years ago, reaching out to us in times of crisis, uncertainty, solidarity and hope.