Evergrande Teeters on Edge Of Default
Cash-strapped China Evergrande Group teetered again on the precipice of default as it faced a final deadline to make an offshore bond coupon payment on Wednesday, amid growing concerns about a liquidity squeeze in the property sector. Evergrande, the world's most indebted developer, has been stumbling from deadline to deadline in recent weeks as it grapples with more than $300 billion in liabilities, $19 billion of which are international market bonds. A failure to pay would result in a formal default by the company, and trigger cross-default provisions for other Evergrande dollar bonds, exacerbating a debt crisis looming over the world's second-largest economy. China's property woes rattled global markets in September and October. There was a brief lull in mid-October after Beijing tried to reassure markets the crisis would not be allowed to spiral out of control. But concerns have resurfaced, with the U.S. Federal Reserve warning on Tuesday that China's troubled property sector could pose global risks. Worries over the potential fallout from Evergrande have also roiled China's property sector in recent days, slamming the bonds.
Tags : INTERNATIONAL Bonds Property economy Beijing Chinam Evergrande Group U.S. Federal Reserve