According to two sources familiar with the matter, some holders of offshore bonds issued by a unit of developer China Evergrande Group had not received interest payments due on November 6 by Monday morning in Asia.
On Saturday, Scenery Journey Ltd was due to pay $82.49 million in semi-annual coupon payments on its 13% November 2022 and 13.75% November 2023 U.S. dollar bonds.
If interest had not been paid by November 6, a 30-day grace period would have begun.
Evergrande narrowly avoided catastrophic defaults on its $19 billion in international capital markets bonds twice in October by paying coupons just before their grace periods expired.
One such period ends on November 10, for more than $148 million in coupon payments that were due on October 11. Evergrande is also due to make $255 million in coupon payments on its June 2023 and 2025 bonds on December 28.
Evergrande's stock fell 0.9%. This year, they've dropped by almost 85%. The company's dollar bonds continued to trade at a discount of roughly 75% to their face value.
Evergrande, once China's top-selling developer, has been afflicted by debts totalling more than $300 billion, and its liquidity woes have reverberated throughout the country's $5 trillion property sector, prompting a slew of offshore debt defaults, credit rating downgrades, and share and bond sell-offs in recent weeks.