Evergrande US – 10/22/2021 – Provides funds to pay interest on securities in the market

China Evergrande Group has provided funding to pay interest on the US dollar bond, a person familiar with the matter told Reuters on Friday (22), which will lead the contractor to a formal default a few days before the deadline.

The source said Evergrande had sent $ 83.5 million to a Citibank Trust account before the October 23 payment deadline expired.

News of remittances will bring relief to investors and regulators.

Still, the contractor has to pay in many other securities.

“They seem to be avoiding short-term installments, and the fact that they were able to find cash flow is a relief,” said a Hong Kong debt restructuring lawyer who represents some of the securities. “But still, Evergrande has to restructure its debt. Paying this before the heavy lifting involved in the restructuring is a way to buy some sort of shareholder.”

Evergrand did not respond to a Reuters request for comment. Citibank declined to comment. The person who knew about this matter was not authorized to speak to the media and therefore did not want to be identified.

The news will boost the journalist’s confidence, he said, adding, “If Evergrande pays this time, I don’t know why he won’t pay next time.”

Evergrande missed more than $ 280 million in coupon payments on September 23, September 29 and October 11, each with a 30-day offer period.

Evergrande’s next payment deadline is October 29, with the 30-day offer ending on September 29.