Skip to content
Subscriber Only

Evergrande Pays Overdue Interest and Again Dodges Default

  • Certain holders of 9.5% bond due 2024 were paid Thursday
  • Company, creditor advisers are taking steps toward debt talks
Bloomberg business news
WATCH: Holders of another Evergrande bond may have received an overdue interest payment. Rebecca Choong Wilkins reports.Source: Bloomberg
Updated on

Some China Evergrande Group bondholders received an overdue interest payment shortly before the expiry of a grace period, buying more time for the debt-stricken property developer as it tries to raise cash through asset sales.

Certain holders of the 9.5% dollar note maturing in 2024 received notification they had been paid on Thursday, according to people with knowledge of the situation, who asked not to be identified discussing private payments. Evergrande skipped an interest payment due Sept. 29, starting the clock on a 30-day grace period before investors could declare a default. It’s the second time this month that the debt-stricken property developer avoided default.