The deadline passed without a word, with no sign that the closely watched-for payment had been made, so investors did what they have done for months to the troubled Chinese property giant with loads of debt and few solutions: They sold, the New York Times reported. Shares of China Evergrande Group fell nearly 12 percent on Friday, as a Thursday deadline to make an $83 million interest payment passed without any word from the company about whether it had met its commitments. One bondholder said that the company had not made the payment, but that the lack of payment did not necessarily put the company in default. The company’s debt covenants provide it with a 30-day grace period before the missed payment results in a default, meaning debt-holders could be facing a month in limbo. China Evergrande’s financial troubles have roiled global markets, though they steadied near the end of this week as investors came around to Beijing’s contention that it could contain any crisis. The concern extends to property owners and policymakers in China who would face the fallout of a possible default. A steady flow of negative news from Evergrande has prompted panic in markets and raised fears of the possible economic contagion — including outside China — should the company collapse.
