Evergrande Flags Default Risk From Cash Crunch; Bonds Fall
- Will do ‘utmost’ to continue operations and deliver properties
- First-half net income falls 29% as gross margin shrinks
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China Evergrande Group warned that it risks defaulting on borrowings if its all-out effort to raise cash falls short, rattling bond investors in the world’s most indebted developer.
“The group has risks of defaults on borrowings and cases of litigation outside of its normal course of business,” the Shenzhen-based company said in an earnings statement on Tuesday. “Shareholders and potential investors are advised to exercise caution when dealing in the securities of the group.”