Wednesday , October 27 2021

Evergrande agrees with creditors to avoid default


AA / Istanbul

Chinese real estate group Evergrande announced Wednesday that it had reached an agreement with one of its creditors to avoid defaulting on its 2025 loans.

According to a report on the Hong Kong Stock Exchange, the group, which has debts worth $ 302 billion, said one of its branches had agreed with creditors a mechanism to repay the debt. to default on payment.

The company did not discuss the amount of debts in which the repayment mechanism had been agreed, although the group was in one of the most difficult times when it announced a week ago that it could not meet its debts. for its lack of liquidity.

According to Bloomberg, the group is expected to pay 232 million yuan ($ 35.5 million) in debt on Wednesday, which will be due on Thursday.

The Chinese group’s announcement of its inability to repay had negative repercussions on global financial markets, which recorded variable falls during this week’s trading, awaiting the fate of debts.

The Chinese government still cannot make a decision to save the group, which is China’s second-largest private real estate company, raising the ghost of its collapse, reminiscent of the collapse of Lehman Brothers, during the crisis. 2008 World Bank.

According to its stock market data, the stock market value of Evergrande at the end of 2020 was about $ 320 billion, but recorded sharp falls from this month, to stabilize its market value below $ 4 billion .

* Translated from Arabic by Mounir Bennour.

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