The shares of the troubled real estate developer China Evergrande Group fell for a second straight day on Tuesday, falling as much as 8% after one of its units failed to make an onshore bond repayment.
Hengda Real Estate Group, the primary domestic subsidiary of Evergrande, reported late on Monday that it had missed the Sept. 25 principal and interest payment deadline for a bond worth 4 billion yuan ($547 million).
After Evergrande said over the weekend that it was unable to issue fresh debt due to an ongoing investigation into Hengda, the company's stock price fell 22% on Monday.
Hengda stated that it will engage in active discussion with bondholders in an effort to quickly come to an agreement while addressing the debt risks and defending the rights and interests of creditors.
The delayed payment is Evergrande's most recent setback. Evergrande has seen a string of crises since its financial problems became public knowledge in 2021 and the company's subsequent default on its offshore debt commitments.
Evergrande has been asking creditors for approval for its plans to restructure $31.7 billion in notes, collateral, and repurchase commitments that are part of its offshore debt.
Evergrande offered offshore creditors a number of choices under the plan outlined in March of this year, including the switching of some of their debt holdings into new notes with maturities of 10 to 12 years.
(Source:www.marketscreener.com)
Hengda Real Estate Group, the primary domestic subsidiary of Evergrande, reported late on Monday that it had missed the Sept. 25 principal and interest payment deadline for a bond worth 4 billion yuan ($547 million).
After Evergrande said over the weekend that it was unable to issue fresh debt due to an ongoing investigation into Hengda, the company's stock price fell 22% on Monday.
Hengda stated that it will engage in active discussion with bondholders in an effort to quickly come to an agreement while addressing the debt risks and defending the rights and interests of creditors.
The delayed payment is Evergrande's most recent setback. Evergrande has seen a string of crises since its financial problems became public knowledge in 2021 and the company's subsequent default on its offshore debt commitments.
Evergrande has been asking creditors for approval for its plans to restructure $31.7 billion in notes, collateral, and repurchase commitments that are part of its offshore debt.
Evergrande offered offshore creditors a number of choices under the plan outlined in March of this year, including the switching of some of their debt holdings into new notes with maturities of 10 to 12 years.
(Source:www.marketscreener.com)
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