Arab Press

بالشعب و للشعب
Monday, Sep 15, 2025

Bankruptcy Is 'Matter of Days', Investor Says as China Evergrande Defaults on Interest Payments

Bankruptcy Is 'Matter of Days', Investor Says as China Evergrande Defaults on Interest Payments

The collapse of Evergrande, the world's most indebted corporation, is considered the largest business default in Chinese history, and reportedly might eventually lead to a "Great Reset," or the global financial system's catastrophic implosion.

One of the largest Chinese developers, China Evergrande Group, defaulted on interest payments to international investors for the second time on Wednesday, German Market Screening Agency (DMSA), an investor company, announced.

"DMSA itself is invested in these bonds and has not received any interest payments until today’s end of the grace period," the company said in a press release. "Now DMSA is preparing bankruptcy proceedings against Evergrande and calls on all bond investors to join it."


The investor noted that China Evergrande Group missed interest payments on two bonds in September, with the 30-day grace period expiring in October. However, "shortly before the end of the grace period, the public was misled by rumors about alleged interest payments."

According to DMSA (Deutsche Marktscreening Agentur in German), they recognized that default was inevitable in late October.

"But while the international financial market has so far met the financial turmoil surrounding the teetering giant Evergrande with a remarkable basic confidence - one can also say: with remarkable naivety - the U.S. central bank Fed confirmed our view yesterday,” the company's senior analyst Dr. Marco Metzler is quoted in the press release as saying. “In its latest stability report, it explicitly pointed out the dangers that a collapse of Evergrande could have for the global financial system."

According to the press release, DMSA invested in Evergrande bonds to be able to file for bankruptcy against the corporation as a creditor, and the grace period on those bonds expired on Wednesday. Evergrande would have been required to pay $148.13 million in interest on three bonds by today's deadline.

"But so far we have not received any interest on our bonds," Metzler said. "With banks in Hong Kong closing today, it’s certain that these bonds have defaulted."


Evergrande has a total of 23 outstanding bonds, all of which have a cross-default clause, according to DMSA. Metzler explained if even one of these bonds defaults, which happened today, the status of the remaining 23 bonds is automatically changed to "default."

But Evergrande Group does not have to declare bankruptcy immediately as a result of this, the investor warned. An insolvency petition must be filed with the court to determine bankruptcy. "This can be done either by the company itself or by one or more of the company’s creditors. And this is precisely what is now planned," DMSA said.

According to Metzler, the company is currently preparing bankruptcy proceedings against the Chinese developer.

"We are already holding talks with other investors in this regard. We would be pleased if other investors were to join our action group," he added.


Importantly, Metzler stated that "as soon as a court opens insolvency proceedings, Evergrande will also be officially bankrupt - and that is only a matter of days."

On Tuesday, China Evergrande Group sold about $145 million in shares in media company HengTen Networks Group Ltd. ahead of the next maturity of its dollar-denominated bonds. Evergrande has sold an approximately 5.7% stake in HengTen Networks over the past three trading sessions, according to media reports on trading.

At the same time, the developer reportedly missed the interest payments on bonds that were due on November 6.

Evergrande has used deferral on several occasions before. Lately, it has been able to avoid default only thanks to this instrument in combination with the sale of its own assets. In October, the developer reportedly sold two business jets to pay off a $128.5 million coupon debt.

Evergrande has been struggling with more than $300 billion in liabilities, $19 billion of which are international market bonds.

Comments

Oh ya 4 year ago
And they are not the only one starting to collapse. Banks around the world are invested so this might cause a world wide collapse. Think Lehman x 10

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Kuwait opens bidding for construction of three cities to ease housing crunch.
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
×