Evergrande Missed Another Guaranteed Payment

Evergrande missed another guaranteed payment. The crisis of the Chinese company Evergrande continues.

Lenders reported that they have yet to receive repayment of a dollar-denominated bond they say is guaranteed by Chinese real estate development company China Evergrande Group and a unit that is in the midst of a crisis. This could be the firm's first major bond default since Chinese regulators called on Evergrande to avoid short-term defaults. Some investors failed to collect the principal payment on a Hong Kong bond that expires on Oct. 3, sources told Bloomberg. Since October 3rd falls on a Sunday, the valid date of the payment was Monday. Evergrande did not answer questions about its debt obligations during the ongoing holiday period in China. Sources stated that the next step would be to formally notify Evergrande and his lawyers to fulfill their obligations. The bond in question was offered by Jumbo Fortune Enterprises for an initial amount of $260 million, according to data compiled by Bloomberg. Jumbo is a joint venture owned by Hengda Real Estate Group, Evergrande's core domestic unit. Details of the guarantees are not known as the bond issue prospectus is not publicly available and the deal is not listed on stock exchanges.