Bonds Drop as Jumbo Creditors Yet to Be Paid: Evergrande Update
- Investors not received payment for a note that matured Oct. 3
- Shares of Evergrande backer surge 32% after take-private offer
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China Evergrande Group’s dollar bonds fell after people familiar with the matter said some creditors had yet to receive repayment of a note they say is guaranteed by the developer.
Evergrande’s bond due 2022 lost 0.8 cent to 23.5 cents on the dollar, Bloomberg-compiled prices showed Thursday. Nonpayment of the bond’s principal may constitute a default as the note has no grace period, although five business days would be allowed if the failure to pay were due to an administrative or technical error. The bond was issued at an initial amount of $260 million by Jumbo Fortune Enterprises.