A bank advising Evergrande's lenders says the embattled property developer is expected to default, report says

Evergrande, a Chinese property developer, is heavily indebted. HECTOR RETAMAL/AFP via Getty Images
According to Reuters, a bank that advises Evergrande's lenders said it expected a default soon.

Evergrande, a Chinese property developer, owes over $300 billion.

Recent missed payments have raised concerns that the company could fail to make its payments and threaten the global economy.

According to Reuters, a representative of Evergrande's investment bank said that the Chinese property developer has been in financial trouble and is likely to default due to missing recent payments.

Evergrande failed to pay $131 million in dollar-denominated bonds. Both bonds have a grace period of 30 days before default is officially declared. This grace period ends in mid-October.

Reuters reported that a group of bondholders has hired Moelis & Co, an American investment bank, as well as Kirkland & Ellis as advisors.

Bert Grisel, a Moelis managing director, said to Reuters that Evergrande had not communicated with him and that bondholders and advisors believe a default is imminent.

Grisel stated that "all of us feel that an imminent default is, or will occur",

He stated that there was no "meaningful dialog with the company" or any provision of information.

Evergrande, China's second largest property developer, is on the verge of collapse. It owes more than $300 billion.

Continue reading: Goldman Sachs suggests that investors should be aware of these four key indicators to determine whether the Chinese real estate market, worth $52 trillion, could collapse in the wake of the Evergrande crisis.

International stock markets were shaken by September's crisis as investors worried about the potential consequences of a major default on the global economy.

Evergrande has not spoken out about its financial situation as its financial woes worsened. Investors in China's property markets, where high levels of debt are common, have been unnerved by the uncertainty. On Friday, shares and property bonds were sold sharply.

Bloomberg reported Thursday that $260 million in bonds held by Jumbo Fortune Enterprises and guaranteed to Evergrande holders are still owing, despite the bond due Monday.

Evergrande shares have been temporarily suspended from trading in Hong Kong as a result of a major transaction announcement.

Chinese financial news service Cailan reported that rival Hopson Development plans buy 51% Evergrande Property Services Group's property management unit. Global Times, a state media outlet, also reported the news.

Evergrande and Moelis & Co did not immediately respond when we asked for their opinion.

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