Evergrande, China's giant property developer said it agreed a deal over an onshore bond payment due this week.
The highly indebted group said its main unit, Hengda Real Estate Group, will make the payment tomorrow for an amount estimated to be just under US$36mln.
In a regulatory filing, Evergrande said the interest payment “has been resolved via negotiations with bondholders off the clearing house”.
Chinese authorities have also begun to lay the groundwork for a vast potential restructuring, assembling accounting and legal experts to examine the finances of the group, according to a Bloomberg report.
Worries about the company's mountain of liabilities, with US$850mln of total coupon payments due this year, have spooked financial markets in Asia and around the world.
"This is all a bit vague", said analysts at Deutsche Bank (NYSE:DB), noting that Evergrande has not yet addressed the US$83.5m interest payment on an overseas bonds also due on Thursday.
Even if financial contagion is avoided, Evergrande is "not good for iron ore", stressed mining analysts at RBC Capital Markets.