We reported on the challenges Evergrande faces as he faces insolvency. Today, the company officially went bankrupt.
In September, we reported on Evergrande’s impending collapse.
We have warned that this is an indication of things to come in China.
This morning it was reported from Germany:
China Evergrande Group again today failed to default on interest payments to international investors. DMSA itself was invested in these bonds and has not received any interest payments until today’s end of the grace period. Now DMSA is preparing bankruptcy proceedings against Evergrande and is appealing to all bond investors to join.
China Evergrande Group, the second largest real estate developer in China, repaid interest payments on two bonds in September, with the 30-day grace period still ending in October. Shortly before the end of the grace period, however, the public was misled by rumors about alleged interest payments. The international media also took the rumors for granted. Only the DMSA – Deutsche Marktscreening Agentur (German Market Screening Agency) then already acknowledged the default and proved in a study that the bankruptcy of Evergrande, the world’s most debt corporation, could eventually lead to a “Big Recovery”, it that is, the final collapse of the global financial system.
Is this the beginning of bigger problems for China and the world’s financial community?
The comments China’s Evergrande, the world’s most indebted corporation, becomes officially insolvent today first appears on The Gateway Pundit.