China Evergrande Group, which filed for Chapter 15 bankruptcy protection in New York late Thursday, has $28.1 billion of outstanding bonds, the bulk of which mature in 2025.
A Chapter 15 bankruptcy is a way for foreign companies with U.S. assets to get access to domestic courts, and protect them from U.S. creditors while they restructure overseas.
See: China Evergrande files for Chapter 15 bankruptcy
The following chart from data solutions company BondCliQ Media Services shows how near-term maturities stack up.
Outstanding China Evergrande debt (USD) by maturity year. Source: BondCliQ Media Services
Evergrande
EGRNF,
which is China’s second-biggest developer, defaulted in 2021, and became a symbol of China’s highly leveraged property sector. Investors are now also worried about another developer, Country Garden, which missed $22.5 million in interest payments on dollar bonds earlier in August.
The following chart shows there was slightly better net buying of the most active Evergrande bonds going into the Chapter 15 announcement. .
Most active China Evergrande issues with net customer flow (last 10 days). Source: BondCliQ Media Services
The following chart shows the year-to-date performance of Evergrande’s most active bonds, which have fallen below 5 cents on the dollar.
Price performance of select China Evergrande bonds YTD. Source: BondCliq Media Services
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