China Evergrande Group pulled back from the brink of default by paying a bond coupon before this weekend’s deadline, according to people with knowledge of the matter, the latest twist in a monthslong drama that has captivated global investors.
The company wired the $83.5 million payment and bondholders will receive the funds before Saturday, the people said, asking not to be identified because the transaction is private. A 30-day grace period for the bond coupon would have expired on Saturday after the firm missed the original payment date. An Evergrande representative declined to comment.
Speculation about a default has been swirling for months, stoking credit-market contagion among other cash-strapped developers and eroding confidence in a Chinese real estate market that by some measures accounts for more than a quarter of the economy.