China’s Hengda Group, which is in a liquidity crisis, is known for failing to pay interest on dollar bonds, while Bitcoin is showing a decline.
According to Bithumb, as of 6:23 pm on the 24th, Bitcoin was trading at 52.9 million won, down 1.12%.
Hengda Group had to pay 83.5 million dollars (about 99.3 billion won) of interest on dollar bonds and 232 million yuan (about 42.5 billion won) of interest on yuan bonds to bondholders on the 23rd, but on the 24th (local time), Reuters, Bloomberg According to news outlets, Hengda Group failed to pay its investors the interest on its dollar-denominated bonds that had been scheduled until the previous day.
The Hengda Group will have to pay about $700 million in interest this year alone, and the bonds will mature at $7.7 billion next year and $10.8 billion in 2023.
On the 22nd, Hengda Group announced that it had “resolved 232 million yuan (about 42.2 billion won) of interest on yuan-denominated bonds through over-the-counter negotiation.” However, it is known that the company did not comment on the non-payment of interest on the dollar-denominated bonds the day before.
Bloomberg said that the only option left for Hengda Group is a grace period of 30 days, and investors’ eyes are fixed on this.
