It’s unclear exactly what time the grace period expires on Wednesday, but two sources with knowledge of the matter said that some bondholders had not received payment at the end of the Asian business day. The sources did not want to give their name because they were not authorized to speak to the media. Evergrande declined to comment.
“The expectation is that it will pay off,” said Karl Clowry, restructuring advisor and partner at Addleshaw Goddard LLP, also pointing to a possible relaxation in the coming weeks of the “three red lines,” financial requirements the central bank imposed last year. to developers to obtain new bank loans.
“It would be quite a surprise if the funds did not flow to the trustee in the required time frame, given the immediate cross default and the ripple effect on suppliers and the PRC property market in general,” added Addleshaw Goddard LLP.
It should be remembered that China’s real estate problems shook world markets in September and October. There was a brief lull in mid-October after Beijing tried to assure markets that the crisis would not spiral out of control. However, concern resurfaced, and the Federal Reserve of USA warned Tuesday that the problematic real estate Chinese could pose global risks.
More and more promoters see their credit rating cut due to the deterioration of their financial profile.
Concerns about the possible consequences of Evergrande also rocked the Chinese real estate sector in recent days, hitting the bonds of real estate companies on fears that the crisis would spread to other markets and sectors.
Source From: Ambito
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