The maturity of the $260 million bond issued by the Jumbo Fortune Enterprise joint venture and guaranteed by Evergrande was extended "more than three months" after the company agreed to provide additional collateral, real estate research firm REDD reported.
The rare grace period Evergrande got to pay off its defaulted dollar-denominated bond came after an agreement to sell a majority stake in the company's main real estate unit for $2 billion 600 million fell through yesterday.
EVERGRANDE'S ATTEMPT TO SELL SHARES IN HOPSON DEVELOPMENT HOLDINGS IS CANCELED
A bid by Evergrande, which is on the verge of bankruptcy with more than $300 billion in debt, to sell its majority stake in its real estate unit Evergrande Property Services to its smaller rival Hopson Development Holdings for approximately $2 billion, has been suspended. The cancellation of the sale agreement came shortly before the 30-day repayment period of another bond by Evergrande, which received a coupon payment of $83 million 500 thousand.
Shares of Evergrande on the Hong Kong stock exchange fell most recently 9.8 percent, offsetting some of their opening losses, while shares of the company's real estate unit fell 5 percent and shares of its electric vehicle unit fell 10.3 percent. Hopson's shares rose 5.6 percent.
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