Evergrande Crisis Worsens as Defaults Pile Up, Ex-CEO Detained
- Company’s Hengda unit missed principal, interest payments
- Firm scrapped creditor meetings, reassesses restructuring plan
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The crisis at China Evergrande Group deepened Monday after the company’s mainland unit said it failed to repay an onshore bond, adding a new layer of uncertainty to the developer’s future as a restructuring plan with its offshore creditors teeters.
The builder at the center of China’s property developer crisis said its Hengda Real Estate Group Co. subsidiary defaulted on 4 billion yuan ($547 million) in principal plus interest due Sept. 25. In March, Hengda missed an interest payment on the 5.8% yuan bond issued in 2020, and said it would “actively” negotiate with bondholders to find a solution, a promise it reiterated in Monday’s statement.