Evergrande officially in default – DMSA prepares bankruptcy proceedings against Evergrande Group

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BERLIN, November 10, 2021 / PRNewswire / – The China Evergrande group defaulted again today on interest payments to international investors. DMSA itself is invested in these bonds and did not receive any interest payments until the end of today’s grace period. Today, DMSA is preparing bankruptcy proceedings against Evergrande and is calling on all bond investors to join it.

China Evergrande Group, second largest real estate developer in China, defaulted on two interest payments in September, with the 30-day grace period still ending in October. However, shortly before the end of the grace period, the public was misled by rumors of alleged interest payments. The international media have also taken the rumors for granted. Only the DMSA – Deutsche Marktscreening Agentur (German Market Screening Agency) already acknowledged the default at that time and proved in a study that the bankruptcy of Evergrande, the most indebted company in the world, could ultimately lead to a “big reset” – the collapse of the global financial system.

(Note to journalists: see DMSA press releases dated 25 october and October 29, 2021, and the DMSA study “The Great Reset – Evergrande and the Final Meltdown of the Global Financial System”; all available via the DMSA homepage www.dmsa-agentur.de.)

“But while the international financial market has so far faced the financial turmoil surrounding the faltering giant Evergrande with remarkable basic confidence – one can also say: with remarkable naivety – the US central bank Fed confirmed our point. of view yesterday, “said DMSA senior analyst Dr. Marco metzler. “In his last stability report, he explicitly underlined the dangers that an Evergrande collapse could have for the global financial system.”

In order to be able to file for bankruptcy as a creditor, DMSA itself invested in Evergrande bonds, the grace period of which expired today (November 10, 2021). In total, Evergrande should have paid $ 148.13 million interest on three bonds by today at the latest. “But so far we have not received any interest on our bonds,” Metzler explains. He adds: “With the banks in Hong Kong closing today, it is certain that these bonds have defaulted. ”

(Note to editors: The exact details of the bonds that have been missing so far can be found in the appendix to this press release.)

Particularly problematic for Evergrande: the 23 bonds in circulation have a cross default clause. “This means that if only one of these bonds defaults, the 23 bonds in circulation automatically have the status of ‘default'”, knows the principal analyst of DMSA Metzler. However, this does not automatically lead to the bankruptcy of Evergrande Group. To determine bankruptcy, an insolvency petition must be filed with the court. This can be done either by the company itself or by one or more creditors of the company. And that is precisely what is now planned. Metzler: “DMSA is preparing bankruptcy proceedings against Evergrande. We are already in talks with other investors in this regard. We would love to see other investors join our action group.

For the DMSA expert, it is clear: “As soon as a court opens insolvency proceedings, Evergrande will also be officially bankrupt – and it is only a matter of days.”

Bond name

Regular Coupon
payment date

End of
goodwill period
(“Grace period”)

Total interest
Payment

(in millions of US dollars)

EVERRE 8.25% maturity 2022

2021.09.21

22.10.2021

83.53

EVERRE 9.5% due 2024

2021.09.29

28.10.2021

45.17

Total unpaid
in October 2021



128.70

EVERRE 9.5% due 2022

2021.10.11

2021.11.10

68.88

EVERRE 10% due 2023

2021.10.11

2021.11.10

42.50

EVERRE 10.5% due 2024

2021.10.11

2021.11.10

32.75

Total unpaid

in November 2021



148.13

Source: DMSA, own research

About DMSA Deutsche Markt Screening Agentur GmbH:

DMSA Deutsche Markt Screening Agentur GmbH is an independent data service that collects and evaluates market-relevant information on companies, products and services. DMSA sees itself as an advocate for consumers, private clients and smart investors. The claim: always look at companies and suppliers, products and services through the eyes of customers. Customers are at the center of DMSA’s work. For them, information that is important and relevant to the decision is brought together and presented in the form of market reviews. The aim is to create more transparency for consumers when selecting products, investments and services.

Press release:
http://www.dmsa-agentur.de/download/20211110_DMSA_EVG_PM_en.pdf

Press contact:
Inga Oldewurtel
Press officer
[email protected]
Phone. : +49 176 62 26 18 97

Responsible for content:
DMSA Deutsche Markt Screening Agentur GmbH
Wichert Street 13
10439 Berlin
Germany

Michael ewy
General manager

http://www.dmsa-agentur.de

SOURCE DMSA Deutsche Markt Screening Agentur GmbH

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