The beleaguered Chinese property giant Evergrande, which is hugely in debt, has laso reportedly missed interest payment owed to overseas investors for the second time within a week, said reports quoting sources with information of the matter.
The Chinese real estate behemoth was slated to pay $47.5m to pay foreign bond holders by Wednesday. But none of the bond holders had received any payment yet, according to reports published by the news agency Reuters and Bloomberg.
There has been no comment on the issue available from Evergrande.
The company, which was the top-selling developer in China not long ago, currently has a debt burden of more than $300bn.
It has been reported that the company has now focused on addressing its liabilities within China to avoid any social unrest.
An $83.5m interest payment on an overseas bond was missed by Evergrande last week. On the other hand, the company arrived at an agreement with its domestic investors for payments of more than $35.9m which was also due.
According to the Reuters report quoting information from sources, some offshore Evergrande bondholders had not received any money or communication on payments even as the deadline for a similar interest payment passed on Wednesday.
No payment had been received by them till Thursday morning, two bondholders reportedly told Bloomberg.
A 10 per cent repayment of wealth management products was however made by the company on Thursday and most of these payments were owed to onshore Chinese retail investors.
In recent weeks, global markets have been riveted by the crisis gripping the world’s most indebted property developer.
Evergrande borrowed more than $300 billion to develop rapidly and become one of China’s largest corporations.
However, once Beijing imposed new restrictions to regulate the amount owed by large real estate developers, Evergrande began marketing its homes at steep discounts in order to guarantee that money was flowing in to keep the firm viable. It is now struggling to make debt interest payments.
Evergrande stated this week that it is selling its $1.5 billion interest in a commercial bank in order to acquire the funds it requires.
The potential crisis surrounding the company has been closely watched by investors around the world as the company hovers on the brink of a dramatic collapse with potentially far-reaching consequences, a controlled split, or the less probable option of a rescue by the Chinese government.
(Adapted from BBC.com)