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China’s troubled property behemoth averts default, signals business shift

Mount Equity Group Tokyo, Japan > News > Business > China’s troubled property behemoth averts default, signals business shift
  • Evergrande sends $83.5 mln for last-minute payment – source
  • Chinese property company faces more imminent debt deadlines
  • Next 30-day payment grace period expires on Oct. 29
  • Global financial markets on tenterhooks

HONG KONG/SHANGHAI, Oct 22 (Reuters) – China Evergrande Group (3333.HK) appeared to have averted default with a last-minute bond coupon payment, a source said on Friday, buying it another week to wrestle with a debt crisis looming over the world’s second-biggest economy.

The property developer also announced plans to give future priority to its electric vehicles business over real estate.

Facing a deadline on Saturday to pay interest on a U.S. dollar bond, Evergande sent $83.5 million to a Citibank trustee account on Thursday, the person with knowledge of the matter told Reuters.

That brought relief for investors and regulators worried about fallout for global markets and added to reassurances from Chinese officials that creditors…

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