Evergrande missed interest payments due on loans to two of its largest bank creditors on Tuesday. The news was not unexpected as China’s Ministry of Housing and Urban-Rural Development convened a meeting with banks last week and informed them that Evergrande will not be able to meet its obligations.

Separately, Evergrande’s main unit Hengda Real Estate said on Wednesday that it has agreed to make a bond coupon payment on its onshore Shenzhen-traded 5.8% September 2025s tomorrow. Details on how much it would pay were not mentioned as per Bloomberg. The amount due on the onshore bond is RMB 232mn ($35.9mn). “Evergrande might have arrived at some kind of standstill with onshore holders. They might have asked them not to act, pending for negotiation for a rescheduling or something of that sort”, said Daniel Fan, a credit analyst at Bloomberg Intelligence.  The focus now turns towards Evergrande’s $83.5mn coupon on its USD 8.25% 2022s due tomorrow, that currently trade at 25.53 cents on the dollar.

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