Evergrande begins “terminal decline” of Australia’s iron ore era

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The Evergrande creditors are piling up and there is no relief in spreads:

The world’s most indebted developer needs to pay a $45.2 million coupon on Wednesday for a dollar bond that matures 2024, Bloomberg-compiled data show. The payment has a 30-day grace period before default could be declared, according to the note’s offering memorandum.

Some holders also maintain Evergrande is a guarantor of a dollar bond that matures Sunday, Bloomberg reported Tuesday. They’re forming a committee to press their claims in the event of a default, according to people familiar with the plans. Separately, Evergrande has made no public statements on an $83.5 million coupon that was due Sept. 23 and at least several holders had said they hadn’t received payment.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.