Evergrande resumed work on several projects after averting bankruptcy

Chinese development group Evergrande Group announced on Sunday that it had resumed work on more than 10 projects in Shenzhen, Tung-kuan and other cities. The statement comes after the news that it managed to avert bankruptcy when it paid interest on the bonds at the last minute. Evergrande, which has commitments of approximately $ 300 billion (€ 257.95 billion), said in a contribution to its Wechat account that some projects have entered the interior decoration phase, while recently completing the construction of other buildings. The report also included several photographs of construction workers on various projects with a time and date stamp. The company paid $ 83.5 million in bond interest on Saturday before the deadline. It gained time to find a way out of the debt crisis, which could shake the world's second largest economy. The money was actually to be paid on September 23 with the possibility of a 30-day delay. If Evergrande failed to raise money in time, a formal insolvency declaration would ensue. Evergrande is considered the most indebted real estate company in China. It urgently needs to raise money for further interest payments on the bonds in the coming weeks and months. The group is so large that some experts fear the risk of spreading "contagion" inside and outside the Chinese economy. Evergrande's difficulties have already been reflected in China's $ 5 trillion real estate sector, which by some metrics accounts for a quarter of economic performance, with a series of default notices, downgrades and corporate bond declines. The Evergrande debt crisis is also being watched by global financial markets, which fear a wider contagion. Evergrande also announced Friday that it plans to prioritize the electric vehicle business over real estate in the future.