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China Evergrande shares fall after report of missed coupon payments -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The China Evergrande Centre sign can be seen in Hong Kong on December 7, 2021. REUTERS/Tyrone Siu/File Photograph

HONG KONG (Reuters] – China Evergrande Group shares plunged following a report it had failed to pay off offshore coupons on Tuesday.

Evergrande’s $19 billion international bonds have fallen into cross default. Evergrande has $255 million in new coupons due Tuesday. These coupon payments are for the June 2023 and 2025 Notes.

Bloomberg News reported that the due date was met without any payment from the property developer. Each payment has a grace period of 30 days.

Evergrande’s decline on Thursday wiped out gains made earlier in the week when the market celebrated the first progress that the company had made with resuming construction work.

Hui Ka Yan the Company Chairman, promised in a Sunday meeting that 39,000 units would be delivered in December. That’s compared to less than 10,000 each month for the three prior months.

Evergrande is insolvent with more than $300 billion and needs to find cash to pay suppliers and creditors.

At 208 GMT, its shares fell 7.3% to HK$1.53 while it was up 0.5%.

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