China Evergrande misses payments on 4 billion yuan onshore bond

THE mainland unit of China Evergrande Group said it missed principal and interest payments totaling several billion yuan, adding further uncertainty to the fate of the giant developer at the centre of the country’s property crisis.

Hengda Real Estate Group, flagship unit of Evergrande, failed to repay 4 billion yuan (S$748 million) in principal plus interest due on Monday (Sep 25), the company said in a Shenzhen stock exchange filing.

China Evergrande cancelled key creditor meetings that had been set for this week and said it must reassess its proposed restructuring. The company faces an Oct 30 hearing at a Hong Kong court on a winding-up petition, which could potentially force it into liquidation.

In March, Hengda failed to make interest payment for the 5.8 per cent yuan bond issued in 2020 and said it would “actively” negotiate with bond holders to find a solution as soon as possible, a promise it reiterated in Monday’s statement. BLOOMBERG