Global financial crash: China Evergrande is STILL on its way to ‘bankruptcy in days’ | City and business | Finance

Although some reports claim Evergrande had managed to avoid defaulting on bond payments on November 10, experts have insisted that the company be declared bankrupt. Such is the large debt the real estate giant is facing, Evergrande is predicted to go bankrupt “in a few days”. Dr. Marco Metzler, senior analyst at Deutsche Marktscreening Agentur (DMSA), claimed Evergrande had in fact defaulted on the $ 148.2 million (110 million pounds) payment on Wednesday.

Despite what he claimed, “anonymous” sources claiming the company had met the deadline, Dr Metzler said the payment had not been officially confirmed.

DMSA itself is a bondholder rand revealed on Wednesday that it had not received interest payments on bonds paid to Evergrande.

He said in a statement: “Evergrande bond payments were hidden again by anonymous sources, but this will not stop bankruptcy in a few days.

The most important date so far, the payment of 1[ads1]48.2 million dollars (originally due on October 11), is still not officially confirmed, but anonymous sources have told major financial news publications that payments have been made.

“Well, we as a representative of DMSA, one of Evergrande’s public bondholders, can tell you that even two days after the 30-day deferral period, no payment has been made.

“It is incomprehensible why the majority of the media still refer to anonymous alleged bondholders and claim that payments are made, when we as public bondholders can clearly confirm that they were not.”

The company has missed several deadlines just for them to make payments before the expiration of 30-day deferral periods.

DMSA also claims that two other postponement periods were missed last month.

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When construction and property-related goods and services are included, the annual housing activity accounts for 29 per cent of the country’s GDP.

Due to its size, it could scare the financial system if the company were to collapse.

This can lead to lenders stopping giving loans due to the uncertainty in the market and thus causing a credit crunch as in 2008.

On Wednesday, Dr Metzler concluded: “DMSA is preparing bankruptcy proceedings against Evergrande.

“We are already holding talks with other investors in this regard.

“We would be happy if other investors joined our action group.

“As soon as a court opens insolvency proceedings, Evergrande will also be officially bankrupt – and it’s just a matter of days.”

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