Evergrande: Chinese Property Giant Admits To Misconduct By Executives

Evergrande: Chinese Property Giant Admits To Misconduct By Executives

Andrew H. Sweet

The revelation comes as the country's second-largest real estate firm by sales is drowning in more than $305 billion (€260 billion) in debt after liquidity from property presales dried up.

The Shenzhen-based property giant is struggling to convince its many creditors to reschedule millions of dollars in liabilities — ranging from loans, bonds, so-called trust products to money owed to contractors and suppliers.

Interest on bonds worth $130 million becomes due in the next ten days and will default if Evergrande fails to pay within 30 days.

Some analysts are questioning whether Beijing will step in to either bail out Evergrande or help manage an orderly collapse. Bankruptcy, even a managed one, would reverberate through the Chinese economy given the firm's liabilities, equal to 2% of the country's GDP.

Read the original story here.

Comments

Sign in or become a tippinsights member to join the conversation.
Just enter your email below to get a log in link.