- A group of Evergrande bond investors sounded the alarm on the troubled Chinese developer, the WSJ reported.
- Last month, Evergrande cancelled a $19 billion debt restructuring, leading bondholders to warn of wider turmoil.
- “This will likely lead to the uncontrolled collapse of the group,” the investors wrote.
A group of investors who hold more than $6 billion of bonds issued by ailing Chinese property giant Evergrande said the developer could soon face big trouble that could spill out into the rest of the country’s real estate market.
The Wall Street Journal and Reuters reported Monday that a statement from bond investors raised doubts about the company’s efforts to win over regulators amid its business turmoil and mounting debts.
Last month, Evergrande cancelled a $19 billion debt restructuring that had been in the works for years at the last minute, citing regulatory hurdles. In their letter, the investors said the deal must get done or else consequences could be dire.
Phil Rosen | Market Insider