Evergrande Group It managed to avoid a financial default after paying interest on three dollar bonds that matured last Wednesday to the international clearing company Clearstream, according to a spokesman for the Chinese firm.
When the grace period expired last Wednesday, the German creditor DMSA announced that it was preparing a bankruptcy proceeding against the Chinese company and asked all Evergrande bond holders to join the initiative, since the Chinese giant should have paid $ 148.13 million in interest on three bonds on November 10 at the latest.
“But so far we have not received any interest on our bonds,” explains DMSA analyst Marco Metzler, who adds that with the closing of the banks in Hong Kong today, “it is certain that these bonds have been defaulted.”
Metzler points out that non-payment does not automatically lead to bankruptcy, since the company itself or its creditors can file an application for insolvency in court, which “is now planned.”
“DMSA is preparing bankruptcy proceedings against Evergrande. We are already having discussions with other investors about it. We would be delighted to have other investors join our action group, ”he noted.
The DMSA expert assured that as soon as a court opens insolvency proceedings, “Evergrande will also be officially bankrupt”, which will happen “in a matter of days.”
It is worth emphasizing that Evergrande owes 300 billion dollars, and is the most indebted company in the world, due to the liquidity crisis that the company is suffering and that affects the Chinese real estate sector.
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