Late last week the property developer made an agreement with domestic bond holders on a yuan-denominated bond.
On Thursday (last week) a US$83.5m coupon payment (on a US42bn offshore bond) became due. I posted on this at length so won’t do so again, suffice to say there is a 30-day ‘grace’ period in which to make payment. What this means is that if payment is made within this time window there is no ‘default’ registered.
Coming up this week is another payment due, $US47.5m. Again, there is the 30 day grace period. Its likely there will be no payment until this period expires … if at all is the bigger question.