Evergrande Subsidiary Fails to Pay $82.49 Million Principal and Bond Interest

Apartment complex built by China's Evergrande Group in Beijing [Photo by Yonhap News]

[Asia Economy Reporter Naju-seok] It has been reported that Evergrande's affiliate, a Chinese real estate company facing a liquidity crisis, failed to pay $82.49 million (approximately 97.6 billion KRW) in dollar-denominated bond interest.

Major foreign media outlets cited sources on the 8th, reporting that Jingcheng, an Evergrande affiliate, failed to pay interest on two dollar bonds by the 6th. Jingcheng is said to have received a 30-day grace period.

Previously, Evergrande itself barely repaid dollar bond interest just before the grace period expiration dates on the 23rd and 29th of last month. The market interprets Evergrande’s payment of interest right before the grace period expiration, instead of on the scheduled payment date, as evidence that its financial situation is not smooth.

The situation surrounding Evergrande is expected to remain difficult. Evergrande faces a default crisis on the 10th, as it must pay $148 million in interest, originally due on the 11th of last month, by the 10th when the 30-day grace period expires.

This content was produced with the assistance of AI translation services.