Evergrande did not pay interest on the bonds again

The Chinese developer concern Evergrande again did not pay interest on the bonds, for the third time in three weeks. This has further increased concerns in the markets that the huge financial problems of the real estate group will spread to other development companies. Some bondholders stated that they had not received $ 148 million (€ 127.87 million) in interest on Evergrande bonds due in April 2022, April 2023 and April 2024. They were to be paid by Tuesday 6.00 CET. This is the third time the company has been late in paying after two outstanding payments in September. Such a development increases the risk that investors will incur huge losses after Evergrande expires 30 days. The company's total debts amount to more than USD 300 billion. In addition, Evergrande's problems are exacerbating the situation of other companies. "If liquidity problems do not improve significantly, we will see more defaults," said the brokerage firm CGS-CIMB. Next year, Chinese developers will have to repay bonds totaling $ 101.2 billion, Refinitiv said. In this context, CGS-CIMB pointed out that developers with a lower credit rating currently have refinancing problems. These include Modern Land and Sinic Holdings, which are seeking to postpone the maturity of their liabilities. On Monday, Modern Land asked the bondholders to postpone the maturity from the end of October to the end of January. Sinic, on the other hand, has announced that it is in danger of default next week.