Update 1: Adds slug
Shanghai, China, Sep 24 (EFE).- The shares of Chinese real estate giant Evergrande plummeted Friday by 11.6 percent in the stock market after the expiration a day earlier of the term to pay the interests of a group of “offshore” bonds.
Although at the opening of the session the fall was much more moderate, of little more than 2 percent, the uncertainty prevailed on the mentioned payments, which would suppose a disbursement of about $ 84 million.
The company has now entered a 30-day period before it is officially deemed to have defaulted.
To that amount will be added another $ 47.5 million from another batch of “offshore” bonds on Sep. 29.
Evergrande had promised it would meet the interest payments on a batch of yuan-listed bonds through the Shenzhen Stock Exchange – the equivalent of about $ 36 million. This had momentarily alleviated investors’ fears about possible bankruptcy of the company, which yesterday rose 17.6 percent on the stock market.
The conglomerate’s liquidity problems and the poor performance of some of its businesses are among the factors that have caused its market value to fall more than 80 percent since the beginning of the year.
Of the company’s total liabilities, which amount to more than $ 300,000 million, some $ 37,000 million correspond to loans to be repaid before the end of the first half of 2022. EFE