Evergrande, the world’s most indebted property developer, is on the brink of default after missing more payment deadlines.
Some of the bondholders of the cash-strapped group had not received coupon payments worth $148m by the end of a 30-day grace period at the close of business in Asia yesterday.
A failure to pay would result in a formal default by the company and would trigger cross-default provisions for other Evergrande dollar bonds.
The developer has more than $300bn in liabilities, $19bn of which are international market bonds.
Rival developer Kaisa has been downgraded by S&P to triple C minus, as it “may not be able to service debts in time” amounting to $88m and due by Friday.
