[Asia Economy Reporter Park Byung-hee] Evergrande Group, a Chinese real estate developer that overcame a default (debt default) crisis, has resumed some construction work.
According to major foreign media on the 24th (local time), Evergrande Group issued a statement saying that it has resumed about 10 construction projects in six cities, including Shenzhen.
Evergrande Group announced on August 31 that some construction work would be halted due to failure to pay suppliers. Evergrande has been carrying out about 1,300 construction projects across China but has not disclosed how many projects were suspended.
On the 22nd, Evergrande overcame the default crisis by paying $83.5 million (approximately 98.4 billion KRW) in interest on its dollar bonds. The interest was originally due by September 23, but fortunately, there was a one-month grace period, and Evergrande barely managed to pay the interest within this period.
However, since Evergrande's debt exceeds $300 billion, the default crisis is expected to continue. Earlier, Bloomberg reported that the bond interest Evergrande must pay amounts to $82.5 million in November and $255.2 million in December.
Evergrande stated last month that it will complete the housing under construction and proceed as planned with the construction of the world's largest soccer stadium currently being built in Guangzhou.
Along with the news of bond interest payments, Evergrande announced that it will prioritize its electric vehicle business over real estate business going forward.
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