Evergrande’s Grace Period Opens Month of Angst for Bondholders

China Evergrande Group’s unusual silence about a dollar-bond interest payment that was due Thursday has put a focus on what might happen during a 30-day grace period.

The world’s most indebted developer has given no signs of having met the $83.5 million coupon payment, which has the grace period before any default could be declared.

Some Chinese companies have used such grace periods in the past to make interest payments: Shandong Ruyi Technology Group Co. last year, for example, and Qinghai Provincial Investment Group Co. in 2019. Several years ago, Glorious Property Holdings Ltd. made multiple interest payments ...