China Evergrande has set up a risk management committee in the hopes of containing any future fallout at the debt-laden developer.
China Evergrande has set up a risk management committee, according to a statement from the property developer, following an acknowledgment last week that it may no longer be able to meet its financial obligations.
The committee includes officials from state entities and will play an important role in «mitigating and eliminating the future risks» of the China Evergrande group.
State Moves
Chinese officials have recently become increasingly involved in China Evergrande’s debt problems including the government of the Guangdong province which summoned founder Hui Ka Yan to express concerns about his recent announcement and the People’s Bank of China (PBoC) which issued a statement blaming the developer’s mismanagement and excessive expansion as causes for the current predicament.
Separately, the PBoC yesterday also made the second cut this year for banks’ cash reserves, releasing $188 billion of long-term liquidity to fuel growth amidst an economic slowdown.
Coupon Payments
Yesterday, a 30-day grace period for two dollar bond interest payments ended including a $41.9 million coupon for a 2022 note and a $40.6 million coupon for a 2023 note.
At the end of business hours in Asia, some claimed that they had not received payments, according to a «Reuters» report citing two unnamed bondholders.
