Evergrande, a real estate developer at the epicenter of China’s real estate crisis, failed to repay the principal and interest of 4 billion yuan in the region.
According to China’s media on the 26th, Evergrande the group said the real estate failed to repay 4 billion yuan in principal and interest on the regional bonds that had to be paid by the 25th.
Evergrande Group said, “We will actively negotiate with creditors and find a solution as soon as possible.”
Amid the bond failure, a group of major offshore creditors reportedly plans to participate in a court petition to liquidate the company unless Evergrande submits a new restructuring plan by next month.
Citing sources, a foreign media outlet reported that Evergrande’s main group of offshore creditors plans to participate in a court petition to liquidate the company unless it submits a new restructuring plan by next month.
Evergrande Group has made a proposal to creditors to restructure $31.7 billion in offshore debt.
Although it announced plans to restructure debt in March, concerns have grown as it recently said it could not issue new bonds due to an investigation into major business units in China.
Evergrande Real Estate, a key subsidiary of Evergrande Group, previously said on the 24th that it is not eligible to issue new bonds because it is being investigated by the securities authorities for violating information disclosure.
On the other hand, other Asian stocks are falling all at once. This seems to be due to a sudden drop in the U.S. stock market the previous day.
The previous day, the New York Stock Exchange fell more than 1% due to prolonged high-interest rates and concerns about shutdowns. Dow fell 1.14%, S&P 500 fell 1.47% and Nasdaq fell 1.57%, respectively. The Dow fall is the largest since March.