Chinese real estate company Evergrande's deal to sell its 51 percent stake in real estate services unit, which is burdened with more than $300 billion in debt, was shelved, other Chinese real estate company Sinic officially defaulted on its debt, and Kaisa's credit rating was downgraded again. The crisis continued exponentially.
On the verge of bankruptcy, Evergrande has suspended its bid to sell a majority stake in its real estate unit, Evergrande Property Services, to its smaller rival Hopson Development Holdings for approximately Hong Kong$20 billion ($2,600 million).
At risk of formally defaulting on one of its dollar-denominated bonds, Evergrande was trying to raise funds to pay its creditors and suppliers. Some investors assume that the company will formally default on its dollar-denominated bonds.
Meanwhile, Evergrande's main subsidiary, Hengda Real Estate Group Co, has completed the coupon payment of 121 million 800 thousand yuan ($ 19 million) on its "domestic" bond, according to sources.
The other Chinese real estate company Kaisa Group, in a statement on Monday, stated that it paid the bond coupon, whose last payment day is October 16, and plans to transfer money for the bond of 35 million 850 thousand dollars, the coupon payment of which will come on October 22.
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