China Urges Evergrande to Avoid Default, Repay Retail Investors
- Dollar-bond coupon due Thursday has a 30-day grace period
- Fears of an Evergrande collapse have roiled markets worldwide
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Financial regulators in Beijing issued a broad set of instructions to China Evergrande Group, encouraging the embattled developer to take all measures possible to avoid a near-term default on dollar bonds while focusing on completing unfinished properties and repaying individual investors.
In a recent meeting with Evergrande representatives, regulators said the company should communicate proactively with bondholders to avoid a default, but didn’t give more specific guidance, a person familiar with the matter said. The developer has an $83.5 million coupon due Thursday, with a 30-day grace period to make the payment.