Evergrande Bondholders Yet to Be Paid as Grace Period Ends

  • Monday is end of grace period for $82.5 million of coupons
  • A default would be first by Evergrande on public dollar notes
WATCH: Some Evergrande bondholders had yet to receive coupon payments. Rebecca Choong Wilkins reports.Source: Bloomberg
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Some China Evergrande Group bondholders had yet to receive overdue coupon payments by the end of a month-long grace period, signaling a possible default by the developer as it prepares for one of China’s largest-ever debt restructurings.

Two holders of the dollar notes sold by Evergrande’s Scenery Journey Ltd. unit said they hadn’t received the payments as of 12:30 a.m. New York time Tuesday. The coupons -- $41.9 million for a note maturing in 2022 and $40.6 million for a bond due the following year -- were initially due Nov. 6, with a 30-day grace period. The holders spoke on condition of anonymity to discuss private investments.