Real Estate Giant Evergrande's Debt Crisis Grows

Local creditors in China have rejected the request of real estate giant Evergrande, which is facing a debt crisis, to postpone the maturity of its bond payments.

Chinese real estate giant Evergrande, which defaulted on its bonds abroad at the end of last year, faced the same risk at home. Local lenders in China rejected the company's request to postpone the maturity of its local bond payment. According to the Shenzhen Stock Exchange, investors holding yuan-denominated bonds of Hengda, one of Evergrande's main subsidiaries in China, rejected a plan to extend the July 8 payment deadline by six months. While the company met with investors last week, more than 90 percent of investors rejected the plan. It was stated that if Evergrande fails to make the bond payment, it will face the risk of default domestically for the first time. In December, the company defaulted on its dollar-denominated payment. Last year, the company's debt crisis was at the top of the agenda of global markets, with the company's liabilities exceeding 300 billion dollars.