![]() The IMF said on Tuesday that China has the ability to address the issues linked to Evergrande's indebtedness, with the fiscal capacity and the legal and institutional tools. "I think 20 cents (for every dollar of the bonds' original face value) is more or less fair." "I don't see the recovery being particularly high," he said referring to what Evergrande bondholders would get if Evergrande gets broken up. "It is pretty serious now and it looks like it is going to be long and drawn out process," said London-based Trium Capital fund manager Peter Kisler about Evergrande and the wider crisis. 18-19 deadline when it will be formally declared in default if it still hasn't stumped up. ![]() It has maintained radio silence for weeks and markets are now counting down to a Oct. Weary Evergrande bondholders still haven't received almost $150 million worth of coupon payments that had been due on Monday, although there was little surprise after the firm had skipped two other payments in recent weeks.Įvergrande didn't reply to a Reuters request for comment. HONG KONG, Oct 12 (Reuters) - Debt-saddled Chinese property firms took heavy fire in bond markets on Tuesday, after the poster child of the sector's woes, Evergrande Group (3333.HK), missed its third round of bond payments in as many weeks and others warned of defaults.Ī wave of developers face payment deadlines before the end of the year and with Evergrande's fate looking increasingly bleak, fears are mounting of a wider crisis. Some property shares gain on hopes of policy support.Property firms top losers in Shanghai exchange traded bonds.Evergrande could be formally declared in default Oct.It said last month it was raising as much as $2.5 billion by borrowing from major shareholders and selling a subsidiary, according to Reuters.įitch revised its outlook from stable to negative last month, citing its limited access to funding amid ongoing refinancing needs.ĬNBC reached out to Guangzhou R&F but did not immediately hear back. Guangzhou R&F is another real estate developer on the radar of investors. Other developers have also been scrambling for cash, signaling further distress in the sector. It missed interest payments on two U.S.-dollar offshore bonds so far, and has been scrambling to raise cash to pay suppliers and investors. "B" rating means material default risk is present, but a limited margin of safety remains.Ĭhina's property sector has come under the spotlight since the debt problems of Evergrande surfaced.Įvergrande - the second-largest developer in China by sales - has warned twice it could default, setting off investor worries. "Furthermore, this incident casts doubt on the transparency of the company's financial disclosures," it added.įitch Ratings on Monday said it downgraded Fantasia to "CCC-" from "B," saying the firm's cash flow situation "could be tighter than we previously expected." According to its website, "CCC" means "substantial credit risk," with a "real possibility" of default. The late payment also raises doubts about the company's ability to repay its maturities on a timely basis," Fitch wrote. "We believe the existence of these bonds means that the company's liquidity situation could be tighter than we previously expected. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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