China Evergrande Group Defaults on U.S. Dollar Debt
Posted on 12/09/2021
China Evergrande Group has defaulted on its U.S. dollar debt, according to Fitch Ratings. Evergrande has roughly US$ 300 billion in total liabilities. Fitch Ratings downgraded the company and its subsidiaries to “restricted default,” meaning that the firm has failed to meet its financial obligations. China Evergrande Group had been trying for months to raise cash to repay lenders, and Xu has even been selling off personal assets to prop up its finances.
China Evergrande Group appeared to “technically” avoid default on any of its offshore bonds by paying overdue interest before their grace periods expired. SWFI reported earlier that China Evergrande Group did default.
In addition, Kaisa Group Holdings Ltd. had defaulted after missing U.S. dollar bond payments.