First Default for Chinese Real Estate Group Evergrande
The Chinese real estate group Evergrande, which has found itself in financial trouble due to the colossal debts it has to pay, has for the first time been unable to meet a financial obligation.
The group failed to repay dollar bonds worth $82.5 million by the deadline that expired Tuesday.
The Evergrande crisis has dragged on for months. The company has 260 billion euros in debt and is trying to sell off assets en masse to pay it off. Last week, Evergrande announced its plans to negotiate debt restructuring with its foreign creditors.
It is feared that bankruptcy of Evergrande will send a shockwave in China and possibly beyond.
The authorities in Guandong province, where the group is headquartered, have increased supervision and taken over part of the management.