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China Evergrande misses 2nd debt payment in a week, investors fear ‘large losses’ – Globalnews.ca

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China Evergrande Group missed paying bond interest due on Wednesday, two bondholders said, its second unpaid offshore debt payment in a week, although the cash-strapped company is scrambling to meet its obligations in its home market.

The company, reeling under a debt pile of $305 billion, was due on Wednesday to make a $47.5 million bond interest payment on its 9.5% March 2024 dollar bond, after having missed $83.5 million in coupon payments last Thursday.

With liabilities equal to 2% of China’s GDP, Evergrande has sparked concerns its woes could spread through the financial system and reverberate around the world, though worries have eased somewhat after the central bank vowed to protect homebuyers’ interests.

Read more:
Evergrande to sell $1.5B stake in Chinese bank as it scrambles to avoid debt default

The developer’s silence on its offshore payment obligations has, however, left global investors wondering if they will have to swallow large losses when 30-day grace periods end for coupons that were due on Sept. 23 and Sept. 29.

Some offshore Evergrande bondholders had neither received interest payments nor any communication by the end of Wednesday New York time, said the people familiar with the matter, who declined to be identified due to sensitivity of the issue.

A spokesperson for Evergrande did not have any immediate comment. Reuters was unable to determine whether Evergrande has told bondholders what it plans to do regarding the coupon payment due on Wednesday.

The two missed offshore payments come as the company, which has nearly $20 billion in offshore debt, faces deadlines on dollar bond coupon payments totalling $162.38 million in the next month.


Click to play video: 'Stocks find some footing after Evergrande relief as Beijing residents say company’s woes won’t hurt wider economy'



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Stocks find some footing after Evergrande relief as Beijing residents say company’s woes won’t hurt wider economy


Stocks find some footing after Evergrande relief as Beijing residents say company’s woes won’t hurt wider economy – Sep 22, 2021

Once China’s top-selling developer, Evergrande is now expected to be one of the largest-ever restructurings in the country. It has been prioritising its onshore liabilities amid concerns about its troubles triggering social unrest.

“I can’t see there being much willingness to give a fairer outcome to offshore bondholders rather than onshore banks, let alone house buyers and people who have lent onshore through the personal loan structures,” said Alexander Aitken, a partner at Herbert Smith Freehills in Hong Kong.

“Of course legally there is also structural subordination from being offshore, which means lenders to Evergrande’s onshore subsidiaries get paid before lenders to the parent company or any offshore debt issuer.”

Construction resumption

Beijing is unlikely to intervene directly to resolve Evergrande’s crisis in the form of a bailout, but analysts say it is wary of a messy collapse that could fuel unrest by local investors, suppliers and homebuyers.

Read more:
China Evergrande debt crisis is worrying investors. Why, and what’s happening?

Authorities have in recent days prodded government-owned firms and state-backed property developers to purchase some Evergrande assets to reduce such risks.

Some instant messaging groups used by people owed money by Evergrande to organize protests and discuss claims have been blocked on Tencent Holdings’ WeChat platform, group members said on Wednesday.

Evergrande said on Wednesday that it would sell a 9.99 billion yuan ($1.5 billion) stake it owns in Shengjing Bank Co Ltd to a state-owned asset management company.

The bank, one of Evergrande’s main lenders, demanded all net proceeds from the sale go towards settling the developer’s debts with Shengjing, which had 7 billion yuan in loans to Evergrande as of the first half last year.


Click to play video: 'Evergrande sell-off putting pressure on Chinese developers: analyst'



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Evergrande sell-off putting pressure on Chinese developers: analyst


Evergrande sell-off putting pressure on Chinese developers: analyst – Sep 21, 2021

Separately, Evergrande’s Pearl River Delta business said in a WeChat post on Tuesday that nearly 20 developments in the area have resumed construction. The post showed construction photos of various sites, and said that work resumption had accelerated since Evergrande vowed at the beginning of the month to deliver homes to buyers.

Its main onshore unit Hengda Real Estate Group announced a resolution of an onshore bond coupon payment on Sept. 23 through “private negotiations”.

Evergrande’s shares opened sharply higher on Thursday, rising as much as 5.21% before reversing course to slump as much as 7.17%. The stock was down 5% in afternoon trade.

“Regardless of how the debt is restructured, Evergrande shareholders and investors in offshore, USD-denominated corporate bonds will suffer large losses,” said Jing Sima, chief China strategist at BCA Research in a note.

(Reporting by Anne Marie Roantree, Clare Jim, Alun John and Donny Kwok in Hong Kong, Xiao Han in Beijing, Andrew Galbraith in Shanghai; Writing by Sumeet Chatterjee; Editing by Christopher Cushing, Gerry Doyle and Kim Coghill)

© 2021 Reuters

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Deadline today for B.C. health workers to be vaccinated against COVID-19 – BC News – Castanet.net

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The deadline for British Columbia health-care workers to be fully vaccinated against COVID-19 is today.

The provincial health officer’s order covers doctors, nurses, students, residents, contractors, volunteers and all other health-care professionals.

Premier John Horgan says he’s hopeful that the small number of workers who are resistant to getting vaccinated will get the information they need to get their shots.

Those who don’t have their first dose of vaccine by the deadline can’t work unless they have a recognized exemption.

The order says unvaccinated workers who get their first shot before Nov. 15 can resume working seven days after the first dose, but they must wear personal protective equipment and take other precautions until they get their second shot.

The Health Ministry says 94 per cent of B.C. health workers were fully vaccinated as of Oct. 24, three per cent were unvaccinated and two per cent had one dose.

Overall, B.C. has reached an 89.6 per cent vaccination rate for first shots among eligible residents age 12 and up and 84.4 per cent have received their second dose.

Provincial health officer Dr. Bonnie Henry and Dr. Penny Ballem, the lead of the B.C. immunization rollout team, will provide an update on COVID-19 on Tuesday.

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Blue Origin, Boeing reveal plan to build 'business park' space station – CBC.ca

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Billionaire Jeff Bezos-owned Blue Origin on Monday unveiled plans to develop a commercial space station called “Orbital Reef” with Boeing, aiming to launch the spacecraft in the second half of this decade.

The venture will be built in partnership with Sierra Space, the spaceflight wing of defence contractor Sierra Nevada Corp, and will be backed by Redwire Space, Genesis Engineering Solutions and Arizona State University.

Orbital Reef will be operated as a “mixed use business park,” and plans to provide the infrastructure needed to scale economic activity and open new markets in space, Blue Origin and Sierra Space said.

“Seasoned space agencies, high-tech consortia, sovereign nations without space programs, media and travel companies, funded entrepreneurs and sponsored inventors, and future-minded investors all have a place on Orbital Reef,” the companies said in a statement.

Sierra in April announced plans to offer the first free-flying commercial space station.

In July, Blue Origin had a successful debut space tourism flight, with Bezos and three others aboard. Earlier this month, 90-year-old Canadian actor William Shatner — Captain James Kirk of Star Trek fame — became the oldest person in space aboard a rocketship flown by Blue Origin.

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Tesla stock surges as Hertz orders 100,000 electric cars – Aljazeera.com

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  1. Tesla stock surges as Hertz orders 100,000 electric cars  Aljazeera.com
  2. Hertz to buy 100,000 Teslas for its rental fleet by next year  CBC.ca
  3. Tesla soars on Hertz deal  CNBC Television
  4. The Hertz-Tesla Deal Will Help Normalize Electric Cars  Bloomberg
  5. Elon Musk Makes Tesla, Hertz and Bitcoin Memes Go Up  Bloomberg
  6. View Full coverage on Google News



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