China’s Evergrande averts default in last-ditch attempt, hints shift to e-vehicles

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China’s Evergrande averts default in last-ditch attempt, hints shift to e-vehicles

Chinese besieged property developer Evergrande had averted a default on bond repayment on Friday, as the beleaguered and world’s most indebted real estate industry giant had reportedly laid off a $83.5 million in bond coupon pay-offs for its US Dollar-denominated bonds, purchasing another week to wrestle with a withering debt crisis as the Chinese property developer’s 30-day grace period to pay off another large chunk in bond repayment is scheduled to expired on October 29.

Aside from that, in a statement, Evergrande said earlier on Friday that the embattled property developer, which has a whopping $305 billion worth of debt-loads due in asset management wings and real estate businesses mostly to retail investors, would prioritize e-vehicle business instead real estate in future.

In factuality, latest remarks from Evergrande, whose businesses accounted for roughly a 2.0 per cent of China’s entire GDP (Gross Domestic Products), that hinted a sweeping swing to e-vehicle businesses came forth a day after it had cancelled out stake sale talks with a home-grown smaller rival citing lack of credibility, vindicating American billionaire businessman and philanthropist Bill Gates’ recent remarks that an ongoing drive to be carbon neutral would stem at least 8 to 10 Teslas, a Google alongside one Microsoft.

China’s Evergrande averts default in last-minute attempt

More importantly, a press agency report had quoted one of the sources familiar with the subject-matter as saying that Evergrande had laid off $83.5 million to a Citibank trustee account on Thursday, ahead of a Saturday deadline to pay off interests on a US Dollar-denominated bond.

Although, Evergrande’s latest move had eased regulators’ frets about a potential ripple effect of Evergrande collapse in global money markets, it remains a subject to sheer discontent on whether Evergrande could successfully jailbreak a debt-crisis lurking over the world’s second-largest economy.

However, Chinese policymakers were quoted saying last week following a meet with Evergrande executives that the creditors’ right would be protected.