China Tells Banks Evergrande Won’t Pay Interest Next Week

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Evergrande’s Hidden Debt Sinkhole Just Keeps Growing

Evergrande’s latest announcement is raising more questions about how much it really owes. Investors may not like the answers: especially since Chinese property developers’ hidden debt problem isn’t confined to Evergrande alone.
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The beleaguered Chinese developer said Tuesday that more than $2 billion of cash held by its separately listed property-service unit has been seized by banks as security for third-party pledge guarantees. The subsidiary said it discovered this during the preparation of its 2021 financial report. Both Evergrande and the unit won’t be able to meet the deadline to publish their annual results before the end of March.

Evergrande hasn’t said what those guarantees are for, or when the banks seized the cash. But it is likely they are linked to the parent company. Lenders seem to be holding on to whatever assets they can still recoup from Evergrande. That would presumably leave even fewer assets remaining on the table for other creditors—such as offshore bondholders.
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I still don't get how they're still actually in business. I really don't. You got going on half a billion fucking dollars just gone overnight and it's like it never happened. It's not reflected in any market anywhere and you know good and well that banks were in that shit up to their necks.
 
I'm thinking money laundering. A lot of the lost money was probably not legal to begin with, so they're not going to raise a huge fuss over it. That would be like one of those idiots that call the cops because someone stole their heroine.
 
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Yes, I'm well aware. We have them on the news here from time to time.

Last night, for instance, there was a guy the police were going to arrest. He ran from them and jumped into a nearby lake. He couldn't swim and had to have the sheriff's deputies dive in to save him.

Yeah. It's Georgia. Nothing really takes me by surprise anymore.
 
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