China Tells Banks Evergrande Won’t Pay Interest Next Week

Well, the inevitable finally happened.

www.cnn.com

Evergrande has defaulted on its debt, Fitch Ratings says

Evergrande, the embattled Chinese property developer, has defaulted on its debt, according to Fitch Ratings.
www.cnn.com www.cnn.com

Evergrande, the embattled Chinese property developer, has defaulted on its debt, according to Fitch Ratings.​
​
The credit ratings agency on Thursday downgraded the company and its subsidiaries to "restricted default," meaning that the firm has failed to meet its financial obligations.​

Fitch said the downgrade reflects the company's inability to pay interest due earlier this week on two dollar-denominated bonds. The payments were due a month ago, and grace periods lapsed Monday.​

Fitch noted that Evergrande made no announcement about the payments, nor did it respond to inquiries from the ratings agency. "We are therefore assuming they were not paid," Fitch said.​
 
Ahhhh. They're all doing the same thing: Building tons of things nobody is buying. Unbelievable. Why the hell buy it if nobody is buying it? And the real kicker is that they're not building the ones they actually sold already. What the hell were they thinking?
 
Something's going on with Evergrande. One of the Reddit stock forums had a thread with this posted:
"Last night at 21:30, Mr. Yi, the China's Central Bank Governor has announced the Evergrande has officialy entered into the bankruptcy liquidation process. The news were published in the social network platform for investors called 雪球 (XueQiu)."

the only news article I've been able to find so far is this: https://elamerican.com/china-prepar...paign=china-prepares-to-halt-crash-evergrande

www.asiamarkets.com

Evergrande downgrade forces BlackRock and other institutions to write-off billions | Asia Markets

5 global financial institutions will be forced to write-off some $23 billion as a result of the China Evergrande Fitch downgrade.
www.asiamarkets.com www.asiamarkets.com
 
That makes sense. I'm completely clueless on what Chinese bankruptcy laws are there, but here in the states we do have restructuring bankruptcy laws. Sears, K-Mart and others have used them for years. You are able to stave off your current creditors, sell off some assets to gain some capital and then try to build your way back out of it all.

I'm only guessing that Evergrande is doing something similar: writing off their current and soon-due debt and restructuring to where they'll be able to stay afloat long enough to recover and be able to pay off the distant future debts they have.

I am guessing though.
 
Gomez Adams said:
That makes sense. I'm completely clueless on what Chinese bankruptcy laws are there, but here in the states we do have restructuring bankruptcy laws. Sears, K-Mart and others have used them for years. You are able to stave off your current creditors, sell off some assets to gain some capital and then try to build your way back out of it all.

I'm only guessing that Evergrande is doing something similar: writing off their current and soon-due debt and restructuring to where they'll be able to stay afloat long enough to recover and be able to pay off the distant future debts they have.

I am guessing though.
Click to expand...

I would also be guessing.
 
Makes you wonder how much longer all those overblown real estate prices are going to last.
 
So now Evergrande is being g ordered to tear down 39 buildings they've already completed because they obtained the building permits for them illegally.

www.cnn.com

Evergrande has been ordered to demolish 39 buildings in Chinese resort

Troubled Chinese real estate developer Evergrande is trying to reassure investors about the impact of an official order to demolish a few dozen buildings in China.
www.cnn.com www.cnn.com

That company is such a dumpster fire I wouldn't be surprised to find out that Trump ran it.
 
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