Evergrande shows workers on site, fails to pay bond

Headquarters of the Evergrande group in Shenzhen, China (Getty Images, iStock)

China Evergrande Group, whose $ 300 billion liability makes it the world’s most indebted developer, tried to reassure investors that it is still working hard because it missed its second offshore bond interest payment in one week.

At least three local Evergrande offices have posted time-stamped photos of workers at construction sites on social media, according to Insider. The Pearl River Delta office released photos from September 24 and said it would deliver 20 local developments that started this week on time. In Guizhou, Evergrande provided photos on WeChat of workers at 16 sites, while Shenzhen submitted photos on 10.

Insider said it couldn’t find photos or videos of construction sites on Weibo.

“Handing over the properties is Evergrande’s commitment to every customer and a responsibility we have to shoulder,” the Shenzhen office wrote in its article on Wednesday. “Over the past few days, Evergrande has made resuming construction and delivering our properties to buyers our priority. “

On the same day, two bondholders said the company missed an interest payment of $ 47.5 million on a U.S. dollar bond due in March 2024, Reuters reported. Evergrande, which has around $ 20 billion in offshore debt, had not contacted foreign investors about the missed payments as of Wednesday’s end of day.

On Thursday, however, Evergrande said it had repaid an unspecified amount of wealth management products that are primarily owned by domestic retail investors. Legally, local investors have priority for repayment over their foreign counterparts.

“I don’t see a lot of willingness to give a fairer result to offshore bondholders rather than onshore banks, let alone homebuyers and people who have lent onshore through personal loan structures,” said Alexander Aitken, partner at Herbert Smith Freehills. in Hong Kong.

[BI] [Reuters] – Dennis Lynch

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