On November 6 China’s Evergrande Group missed a debt payment deadline of USD82.5 million, pushing the company to the brink of default. The payment was on an estimated USD19 billion of international bonds.
Since the revelations of the company’s debt crisis, Evergrande has been branded China’s “most indebted company,” and is now at risk of becoming the country’s biggest ever defaulter.
Last week, the provincial government of Guangdong stepped in to help manage the fallout.
The support from the local government and awareness from both policy makers and the market is said to alleviate any consequences that may arise should the company default.
Evergrande is one of China’s top property developers, with more than 1,300 real estate projects across China.
The company was founded in Guangzhou in 1996, and in 2011 bought the rights to Guangzhou Football Club, renaming them Guangzhou Evergrande Football Club.
In 2021, regulations in the Chinese Super League meant that clubs could no longer have branded names, and they became Guangzhou FC.
[Cover image via Pixabay]