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China Evergrande’s managed restructuring is under way; stocks and bonds sink
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China Evergrande Group’s EGRNF -12.86% stocks and bonds fell to historic lows, after Chinese authorities stepped up their involvement in the company’s affairs and the indebted developer moved closer to a reorganization of its hefty international debt.
Evergrande was also running up against a payment deadline, as it has done several times in recent months. The 30-day grace period on $82.5 million in interest payments from two sets of dollar bonds issued by Evergrande’s Scenery Journey Ltd. unit ends Monday, said Iris Chen, a credit analyst at Nomura. Ms. Chen said failure to pay the coupons would trigger a default.
Late Friday, Evergrande warned it had been asked to pay $260 million under a debt guarantee, and said for the first time directly that it planned to work with offshore creditors on a restructuring.
BEYOND EVERGRANDE, CHINA'S PROPERTY MARKET FACES A $5 TRILLION RECKONING