\n<\/p>\n
BERLIN, GERMANY – Newsaktuell – 8 December 2021 – The Chinese real
\nestate developer China Evergrande Group once again defaulted on overdue
\ninterest payments on December 6, 2021. The previous Friday, the company
\nofficially admitted for the first time that it was in the very deepest
\nfinancial trouble. The debts of the real estate giant now amount to more than
\n$300 billion. In cooperation with DMSA Deutsche MarktScreening Agentur GmbH, a
\ncreditor has prepared an insolvency petition against Evergrande Holding. Now,
\nfellow campaigners are being sought before the application is filed with the
\ncourt.<\/p>\n
\u00a0<\/p>\n
A bondholder of
\nChina Evergrande Group, Liechtenstein-based Financial Market Partners Capital
\n(FMPC) Consulting AG, has been preparing an insolvency petition against the
\nCayman Islands-registered Evergrande Holding since November 22. FMPC Consulting
\nAG was supported and advised by DMSA Deutsche MarktScreening Agentur GmbH,
\namong others. <\/p>\n
(<\/i>Note for the
\neditorial offices:<\/i> More about FMPC Capital AG and its investment in
\nEvergrande bonds can be found at the end of this press release).<\/i><\/p>\n
\u00a0<\/p>\n
In the meantime, the
\napplication has been completed and can be filed at any time with the Grand
\nCourt of the Cayman Islands in George Town. As FMPC Consulting AG sees itself
\nas the administrator of all international Evergrande creditors and in order to
\nreduce the cost risk for each applicant, the company offers other international
\ncreditors to join its proceedings.<\/p>\n
\u00a0<\/p>\n
On Tuesday, Dec. 7,
\nBloomberg news agency reported two holders of U.S. dollar bonds issued by
\nEvergrande subsidiary Scenery Journey said they had not received interest
\npayments by the end of the 30-day grace period. A total of $82.5 million in
\ninterest would have been due no later than Dec. 6.<\/p>\n
\u00a0<\/p>\n
Previously, in the
\ncase of non-performing bonds issued by the Evergrande conglomerate, there had
\nbeen repeated reports in international media that interest payments had been
\nmade at the last second after all. “However, these reports were not
\nconfirmed to us either by Evergrande itself or by the paying agents of the
\nbonds,” explains Dr. Marco Metzler, Chairman of the Board of Directors of
\nFMPC Consulting AG and Senior Analyst at DMSA Deutsche MarktScreening Agentur
\nGmbH. “In this respect, the current Bloomberg reports represent a further
\naggravation of the situation,” Dr. Metzler continued.<\/p>\n
An aggravation with
\nannouncement: Already on Friday, December 3, Evergrande had officially admitted
\nfor the first time in a statement to the Hong Kong Stock Exchange – the home
\nstock exchange of the holding company – that there was “no guarantee that
\nthe group will have sufficient funds to continue to meet its financial
\nobligations”.<\/p>\n
\u00a0<\/p>\n
“This official
\nstatement alone has confirmed our assessment of the Group’s absolutely desolate
\nfinancial situation,” explains Dr. Marco Metzler, Chairman of the Board of
\nDirectors of FMPC Consulting AG and Senior Analyst at DMSA Deutsche
\nMarktScreening Agentur GmbH. He finds the default on interest payments hardly
\nsurprising for another reason: “We have still not received overdue
\ninterest for our bonds – which should have been paid by November 10 at the latest.
\nAnd this despite the fact that it has been widely reported in the press that
\nthe overdue interest payments to international investors have been made.”
\nIn Dr. Metzler’s view, the official statement on December 3 and the final
\ndefault on interest payments on December 6 for the Evergrande subsidiary’s bond
\nrepresent two events of default at once for all 23 outstanding international
\nbonds of the Evergrande conglomerate with a nominal value of $23.7 billion.
\n“Almost all of it will be lost,” fears Dr. Metzler.<\/p>\n
\u00a0<\/p>\n
Michael Ewy,
\nManaging Director of DMSA Deutsche MarktScreening Agentur GmbH, adds,
\n“With the insolvency application we helped prepare, we are now trying to
\nsave what can be saved for FMPC Consulting AG and other international
\ncreditors.” The fear of financial analyst Metzler: “Evergrande is
\ninsolvent, but officially not yet insolvent. With the default on a bond now
\nconfirmed in the press for the first time, the management of the Evergrande
\nholding company must file for insolvency if it does not want to be guilty of
\ndragging its feet. However, since this application has not yet been made, we –
\nthe DMSA and FMPC Consulting – are concerned that assets may be removed from
\nthe insolvency estate.”<\/p>\n
\u00a0<\/p>\n
“In view of all
\nthese developments, it was right to start preparing an insolvency petition
\nagainst Evergrande already at the end of November “, explains Dr. Marco
\nMetzler in his capacity as Chairman of the Board of Directors of FMPC
\nConsulting AG. He invites affected international investors to join the
\napplication. The application is to be filed with the competent court in George
\nTown within the next few days.<\/p>\n
Upon acceptance of
\nthe insolvency petition, an insolvency administrator will begin winding up the
\nEvergrande Group and liquidating the assets for investors and creditors.
\n“The prices of all Evergrande securities – stocks and bonds alike – will
\nfall to virtually zero in the process,” predicts senior analyst Metzler.
\n“But all distressed sales beginning with the filing date can then also be
\nreversed.”<\/p>\n
\u00a0<\/p>\n
However, DMSA senior
\nanalyst Metzler believes there is little hope for Evergrande’s turnaround.
\n“The restructuring analysis by Fitch Ratings – my former employer and one
\nof the three largest rating agencies in the world – assumes that Evergrande
\nwould be liquidated at a restructuring rate of zero to ten percent.” That
\nmeans creditors would get back a maximum of one-tenth of the capital they
\ninvested, if access to assets in China is even possible.<\/p>\n
“The fact that
\nthe Chinese government has now sent high-ranking state officials to
\nEvergrande’s boardroom and thus de facto controls the group does not
\nnecessarily mean that all claims – especially those of foreign investors – will
\nalso be serviced,” fears Dr. Metzler. Rather, he sees it as likely that
\nEvergrande’s inevitable insolvency will lead to a host of other bankruptcies.
\n“To avoid internal unrest, China would then be forced to return to a
\nhard-line communist approach,” concludes Dr. Metzler. In his view, this
\nwould ultimately imply that all of China’s international debt of around $585
\nbillion would no longer be serviced, and equity investments by foreign
\ninvestors of around $600 billion would also have to be written off completely –
\nwith devastating consequences for the global banking system and the entire
\nworld economy.<\/p>\n
\u00a0<\/p>\n
“Supply chains BERLIN, GERMANY – Newsaktuell – 8 December 2021 – The Chinese real estate developer China Evergrande Group once again defaulted on overdue interest payments on December 6, 2021. The previous Friday, the company officially admitted for the first time that it was in the very deepest financial trouble. The debts of the real estate giant …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/19367"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=19367"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/19367\/revisions"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=19367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=19367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=19367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nwould be even more strained than they already are today. This, in turn, would
\nthen inevitably lead to galloping inflation in the U.S., Europe and other
\ncountries. As a result, there would be extreme distortions in the global
\nfinancial system – with insolvencies of players who are still considered rock
\nsolid today,” fears Dr. Metzler. “Triggered by a Chinese financial
\nvirus called Evergrande, the world could face a ‘Great Reset,’ the final
\ncollapse of the current global financial system.”<\/p>\n<\/p><\/div>\n\n
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