The question has loomed over China Evergrande Group for months: Is the world¡¯s most indebted developer too big to fail?
Investors finally have their answer. With a flurry of announcements that sent Evergrande bonds tumbling to record lows this week, the company and Beijing have made it clear that billionaire Hui Ka Yan¡¯s property giant is headed for one of China¡¯s largest-ever debt restructurings.
Barring a last-minute shock, holders of $19.2 billion in Evergrande dollar notes face deep haircuts as the company overhauls its mammoth balance sheet without a government bailout ¡ª a process that promises to be long, contentious and potentially risky for Asia¡¯s largest economy.
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