Evergrande posts photos of workers at dozens of job sites as troubles mount

Company expected to prioritize onshore obligations over international debt

National Weekend Edition Weekend Edition /
Oct.October 02, 2021 04:19 PM

Evergrande Group headquarters in Shenzhen, China (Getty Images, iStock)

China Evergrande Group, whose $300 billion of liabilities make it the world’s most indebted developer, tried to reassure investors that it’s still hard at work as it missed its second offshore bond interest payment in a week.

At least three local Evergrande offices posted time-stamped photos of workers at construction sites on social media, according to Insider.The Pearl River Delta office posted photos from Sept. 24 and said it would deliver on time 20 local developments that started this week. In Guizhou, Evergrande provided photos on WeChat of workers at 16 sites, while Shenzhen offered pictures at 10.

Insider said it couldn’t find photos or videos of construction sites on Weibo.

“Handing over properties is Evergrande’s commitment to every customer, and a responsibility we must fulfill,” the Shenzhen office wrote in its post on Wednesday. “In the last few days, Evergrande has made resuming construction and delivering our properties to buyers our priority.”

That same day, two bondholders said the company missed a $47.5 million interest payment on a U.S. dollar bond due in March 2024, Reuters reported. Evergrande, which has about $20 billion of offshore debt, hadn’t contacted overseas investors about the missed payments by the end of the day on Wednesday.

On Thursday, however, Evergrande said it had repaid an unspecified amount of wealth management products that are mostly owned by domestic retail investors. Legally, local investors have priority for repayment over their overseas counterparts.

“I can’t see there being much willingness to give a fairer outcome to offshore bondholders rather than onshore banks, let alone house buyers and people who have lent onshore through the personal loan structures,” said Alexander Aitken, a partner at Herbert Smith Freehills in Hong Kong.

[BI] [Reuters] — Dennis Lynch





    Related Articles

    arrow_forward_ios
    Donald Trump (Credit: Win McNamee/Getty Images)
    Newly uncovered trademarks show Trump’s Cuba real estate aspirations
    Newly uncovered trademarks show Trump’s Cuba real estate aspirations
    Hong Kong’s $80B plan to fix housing crisis is “disastrous,” critics say
    Hong Kong’s $80B plan to fix housing crisis is “disastrous,” critics say
    Hong Kong’s $80B plan to fix housing crisis is “disastrous,” critics say
    Chinese real estate investments face mounting debt concerns
    Chinese real estate investments face mounting debt concerns
    Chinese real estate investments face mounting debt concerns
    (Credit: Pixabay)
    Owned but unoccupied homes account for more than a fifth of China’s urban housing
    Owned but unoccupied homes account for more than a fifth of China’s urban housing
    What’s behind the projected slowdown in China’s property market
    What’s behind the projected slowdown in China’s property market
    What’s behind the projected slowdown in China’s property market
    Chinese developers look to international bond market amid default troubles
    Chinese developers look to international bond market amid default troubles
    Chinese developers look to international bond market amid default troubles
    (Credit: Pixabay, LinkedIn)
    Deal would make CapitaLand the largest diversified real estate company in Asia
    Deal would make CapitaLand the largest diversified real estate company in Asia
    Hong Kong real estate investors are hot for co-living in cooling housing market
    Hong Kong real estate investors are hot for co-living in cooling housing market
    Hong Kong real estate investors are hot for co-living in cooling housing market
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...