China Evergrande managed to avoid a default for the second time after making a payment for an offshore bond before the grace period expired.
Evergrande made an interest payment for an offshore bond originally due on September 29, according to a «New York Times» report citing unnamed sources, preventing a miss of the 30-day grace period which ends today that would trigger an official default.
Certain holders of the 9.5 percent dollar note maturing in 2024 received a notification that they had been paid yesterday, the report added.
This marks the second time that the debt-laden developer made its interest payment right in the nick of time to avoid a default on offshore debt after doing the same last week.
Fundraising Difficulties
Meanwhile, Evergrande has faced various difficulties with raising funds via asset sales.
Earlier this month, two deals fell through including an attempt to sell its Hong Kong headquarters in a proposed $1.7 billion deal and another deal involving part of its property services unit in a $2.6 billion deal.
In the latest development, a Hong Kong luxury home valued at $90 million and linked to founder Hui Ka Yan was reportedly pledged as collateral to pay off a $260 million bond guaranteed by Evergrande.
The Chinese property firm has also reportedly engaged offshore bondholders for talks after signing non-disclosure agreements with advisors Moelis & Co. and Kirkland & Ellis.
