London Daily

Focus on the big picture.
Saturday, Nov 22, 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

0:00
0:00
Close
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
×