Global financial crash: China Evergrande STILL heading for ‘bankruptcy in days’ | City & Business | Finance

0
24


Although some reports claimed Evergrande had managed to avoid defaulting on bond payments on November 10, experts have insisted the company is set for bankruptcy. Such is the large debt facing the real estate giant, Evergrande is predicted to go bankrupt “in days”. Dr Marco Metzler, senior analyst for Deutsche Marktscreening Agentur (DMSA) claimed Evergrande had in fact defaulted on the $148.2million (£110million) 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.

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

He said in a statement: “Evergrande bond payments glossed over again by anonymous sources, but this will not stop bankruptcy happening in days.

“The most important date so far, the $148.2 million payment (originally due Oct. 11), has still not been 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 deadline of the 30-day grace period, still 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 being made, when we, as public bondholders, can clearly confirm that they were not.”

The company has missed several deadlines only for them to make payments before the end of the 30-day grace periods.

The DMSA also claims two other grace periods were missed last month.

JUST IN: VDL vows £80bn research project ‘open to world’ after Article 16 row

When including construction and property-related goods and services, the annual housing activity accounts for 29 percent of the country’s GDP.

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

This could cause lenders to stop providing loans due to the uncertainty in the market thus causing a credit crunch similar to 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 pleased if other investors were to join our action group.

“As soon as a court opens insolvency proceedings, Evergrande will also be officially bankrupt – and that is only a matter of days.”





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here