Evergrande averts default, wires funds due Sept 23

Ailing property developer China Evergrande has avoided a default on its debt, at least for now.

The cash-strapped company wired $83 million dollars in interest payments it owed offshore bondholders on Thursday.

It's coming only days before a deadline that would have plunged Evergrande into formal default.

The news was first reported in the state-backed Securities Times and apparently will allow holders of the bond to be paid before Saturday.

A source corroborated to Reuters that a payment had been made.

October 23 is the end of Evergrande's 30 day grace-period on payment, since it missed the initial deadline a month ago.

Evergrande's dollar bonds surged Friday morning, and its April 2022 and 2023 notes jumped more than 10 percent.

It's a sign that investors are confident Evergrande will make good on its many coupon payment deadlines ahead, including one on a dollar bond of around $47 million, which will expire on October 29.

Evergrande is saddled with over $300 billion in liabilities, and has become the poster child for China's debt-fueled property sector.

In recent days, a string of Chinese officials have sought to reassure investors, saying creditors' interest would be protected.

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