China’s Evergrande dodges default, for now, with 11th-hour payment
Litigation partner Scott E. Mollen was quoted in The Washington Post discussing China Evergrande Group, the world’s most indebted real estate developer. Evergrande recently wired a $83.5 million payment to bondholders a day before a 30-day grace period would have expired, narrowly avoiding default.
Scott said, "While it is obviously a positive step, people want to see a viable plan for the next payment." He added, "The fundamental issues remain and need to be addressed." Scott further explained that Evergrande’s plight has caused increased due diligence for loans and deals with other Chinese real estate companies, even as they argue that they aren’t at risk.
He reflected, "Our significant Chinese clients say, 'We are not Evergrande, we have liquidity, we have not violated deleveraging rules.'"
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