China Evergrande Group s defaulted offshore bonds are trading at just 1 cent on the dollar following a Hong Kong court order for the company s liquidation, highlighting the dangers of trying to bargain with the Communist Party.
A 99% Bond Wipeout Hands Hedge Funds a Harsh Lesson on China bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
(Bloomberg) From afar, China Evergrande Group had all the makings of a killer distressed-debt trade: $19 billion in defaulted offshore bonds; $242 billion in assets; and a government that appeared determined to prop up the country’s faltering property market. So US and European hedge funds piled into the debt, envisioning big payouts to juice their returns.Most Read from BloombergBiden’s Attempt to Address Memory Issue Backfires With New GaffeA 99% Bond Wipeout Hands Hedge Funds a Harsh Lesso
The lenders of Byjus $1.2 billion term loan had moved the city court last Thursday seeking an ex-parte injunction on the transaction allowing Ranjan Pai to convert a loan of about $250-$300 million he had advanced to the brick-and-mortar coaching network into equity in Aakash Institute. Thursdays legal challenge by the TLB lenders caught both Byjus and Pai “by surprise”.