The largest Chinese developer a bit closer to the fall. The company did not pay interest

Some holders of foreign bonds of the troubled Chinese developer Evergrande have not yet received interest due on Thursday. Sources familiar with the situation told Reuters on Friday. Evergrande has not yet commented on the payment of interest. The company’s shares fell almost 12 percent during trading on the Hong Kong Stock Exchange on Friday.

Evergrande’s total liabilities exceed $ 300 billion (CZK 6.5 trillion). The company’s official deadline for paying interest of $ 83.5 million (CZK 1.8 billion) on foreign bonds expired on Thursday. If he does not pay this interest within 30 days of the expiration of the term, he will become insolvent.

Investors fear that the collapse of the company could severely affect the Chinese financial system and that the negative effects could spread to the rest of the world. According to Reuters, bondholders are beginning to believe that it may take weeks for the situation to clear up.

If Evergrande becomes insolvent, it will have to restructure its debt. Analysts expect that in such a case, bondholders will recover only a small part of the money invested.

Evergrande currently owns over 1,300 development projects in more than 280 Chinese cities. According to a report by The Wall Street Journal (WSJ) on Thursday, the Chinese government has called on authorities across the country to prepare for the collapse of Evergrande.

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