Evergrande Staves Off Default With Last-Minute Bond Payment
- Next interest payment deadline comes due in a week’s time
- The news helps fuel weekly jump in Chinese junk bonds
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China Evergrande Group pulled back from the brink of default by paying a bond coupon before Saturday’s deadline, giving the property giant at least another week to come to grips with a debt crisis that has rattled investor confidence in the world’s second-largest economy.
The $83.5 million payment to international bondholders surprised some China watchers who had expected Evergrande to prioritize local creditors, suppliers and disgruntled homebuyers -- many of whom are waiting for the company to make good on overdue obligations.