Caixin reports that Evergrande’s subsidiaries have not yet made payments to the city government of Lanzhou (capital of Gansu province) as per a list released by Lanzhou last week. While the amount Evergrande owes is not known, the notice urged the companies to make payments “as quickly as possible”. In related news, Evergrande’s supplier Peace Tree Wood sued the developer on account of CNY 2mn ($310k) in commercial bills not yet being paid, after being overdue for over 50 days. The news comes a day after Fitch downgraded Evergrande by two notches to CCC+ and after the developer and its Anhui-based unit were sued by Huaibei Mining over a CNY 401.3mn ($62mn) missed payment. This comes amid growing concerns over Evergrande’s liquidity position after $32bn in commercial bills outstanding came to light.
Evergrande’s dollar bonds have fallen to levels not seen before as negative news continues to flow in. Many of its dollar bonds now trade below 50 cents on the dollar. The bonds are lower again today with its 12% 2024s down 1.3 to 45.13 and its 13% 2022s down 2.4 to 47.06.
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