Beautiful Virgin Islands

Tuesday, Sep 16, 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.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
×