Evergrande missed a US dollar bond payment deadline this week.
REPUBLIKA.CO.ID, BEIJING — China Evergrande The Group has the largest debt pile in the world, which is around 19 billion US dollars or equivalent to Rp. 270.902 trillion (exchange rate of Rp. 14,258 per US dollar). This caused waves in global markets, and speculation ran wild that Beijing would intervene to prevent an irregular collapse for the company.
As reported from the page Bloomberg, Saturday (25/9) the credit market on the other hand lacked attractive yields and a major depressed situation, which attracted the attention of US investment funds looking for new bets.
Funds including Saba Capital Management Boaz Weinstein and Redwood Capital Management Ruben Kliksberg began building corporate bond positions, while European banks assured investors they had limited exposure to troubled developers. Other major investors had exposure to the company prior to the latest woes, with some choosing to keep most of their positions.
Reported Reuters, Saturday (25/9), the company missed a US dollar bond payment deadline this week and its silence on the matter has left global investors wondering whether they will have to incur heavy losses when the 30-day grace period expires.
China Evergrande New Energy Vehicle Group said without strategic investments or asset sales, its ability to pay staff and suppliers and mass-produced vehicles would take a hit. Evergrande’s silence on interest payments of $83.5 million this week contrasts with his treatment of his domestic investors.
On Wednesday, Evergrande’s main property business in China said it was negotiating privately with domestic bondholders to settle separate coupon payments on yuan-denominated bonds.
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