People familiar with the situation say China Evergrande Group failed to make payments due on some US dollar notes before the last deadline expired on Monday, potentially laying the groundwork for a colossal default and one of the country’s largest-ever debt restructurings.
After accruing more than $300 billion in obligations, the massive property developer had been on the verge of bankruptcy for months. Evergrande requested assistance from the government of its home province of Guangdong on Friday, and the government agreed to send a working group to assess and help resolve the company’s issues. Analysts interpreted the development as the start of Evergrande’s managed reorganization and a foreshadowing of the 25-year-old conglomerate’s default.
Evergrande failed to pay $82.5 million in interest payments on two sets of dollar bonds that were due Nov. 6 before the end of a 30-day grace period on Monday, according to sources familiar with the situation.
