The Bloomberg Law Service (Bloomberg Law) reported Thursday that Chinese regulators have asked giant Evergrande Group to avoid a short-term default on bond interests. in dollars on the same day in which the real estate company in financial hardship should pay interest on foreign debt. much awaited by the market.
The report, which relayed information from an informed source, added that executives and regulators officials said in recent meetings with Evergrande that the company should communicate effectively with bondholders to avoid defaulting, but those authorities have not. given more specific and direct instructions to the company. about this.
The Wall Street Journal said Thursday in an independent report, citing officials familiar with the discussions, that Chinese authorities are asking local governments to prepare for a possible collapse in Evergrande.
Today, Evergrande has to pay $ 83.5 million in interest on $ 2 billion in foreign bonds. It also has to pay $ 47.5 million in interest next week.
It will be considered in late payment if you do not manage the two amounts within 30 days from the due date.
The paper added, citing officials, that local governments have been ordered to form groups of accountants and legal experts to review the finances associated with Evergrande’s operations in their areas.
The WSJ added that he was also ordered to speak with local state and private real estate developers to prepare to take over projects and train law enforcement teams to monitor public anger and so-called crowd events and minimize demand for any protests.
A spokesperson for Evergrande, China’s second largest real estate developer, declined to comment on the reports.
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