PR92957

BERLIN, Nov. 10 2021 /PRNewswire=KYODO JBN/ --

China Evergrande Group today again defaulted on interest payments to

international investors. DMSA itself is 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 calls on all bond

investors to join it.

China Evergrande Group, the second largest real estate developer in China,

defaulted on interest payments on two bonds back in September, with the 30-day

grace period still ending in October. However, shortly before the end of the

grace period, 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) already

recognized the default at that time and proved in a study that the bankruptcy

of Evergrande, the world's most indebted corporation, could ultimately lead to

a "Great Reset", i.e. the final meltdown of the global financial system.

(Note to journalists: See DMSA press releases dated Oct. 25 and Oct. 29, 2021,

and the DMSA study "The Great Reset - Evergrande and the Final Meltdown of the

Global Financial System"; all available via the DMSA homepage

www.dmsa-agentur.de.)

"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," says DMSA senior analyst Dr. Marco Metzler.

"In its latest stability report, it explicitly pointed out the dangers that a

collapse of Evergrande could have for the global financial system."

In order to be able to file for bankruptcy against the company as a creditor,

DMSA itself invested in Evergrande bonds, whose grace period expired today

(Nov. 10, 2021). In total, Evergrande would have had to pay $148.13 million in

interest on three bonds no later than today. "But so far we have not received

any interest on our bonds," explains Metzler. He adds, "With banks in Hong Kong

closing today, it's certain that these bonds have defaulted."

(Note to editors: Exact details of the bonds that have defaulted so far can be

found in the appendix to this press release.)

Particularly problematic for Evergrande: all 23 outstanding bonds have a

cross-default clause. "This means that if a single one of these bonds defaults,

all 23 outstanding bonds automatically have 'default' status" DMSA senior

analyst Metzler knows. However, this does not automatically result in a

bankruptcy for Evergrande Group. To determine bankruptcy, a insolvency petition

must be filed with the court. 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. Metzler: "DMSA is preparing bankruptcy proceedings against Evergrande.

We are already holding talks with other investors in this regard. We would be

pleased if other investors were to join our action group."

For the DMSA expert, it is clear: "As soon as a court opens insolvency

proceedings, Evergrande will also be officially bankrupt - and that is only a

matter of days."

                                        End of the        Total interest

                       Regular coupon   goodwill period   payment

Bond Name              payment date     ("grace period")  (in US$ million)

EVERRE 8.25% due 2022        2021.09.21           22.10.2021             83.53

EVERRE 9.5% due 2024        2021.09.29           28.10.2021             45.17

Total not paid

in October 2021                                                    128.70

EVERRE 9.5% due 2022        2021.10.11           2021.11.10             68.88

EVERRE 10% due 2023        2021.10.11           2021.11.10             42.50

EVERRE 10.5% due 2024        2021.10.11           2021.11.10             32.75

Total not paid

in November 2021                                            148.13

Source: DMSA, own research

About DMSA Deutsche Markt Screening Agentur GmbH:

DMSA Deutsche Markt Screening Agentur GmbH, is an independent data service that

collects and evaluates market-relevant information on companies, products and

services. DMSA sees itself as an advocate for consumers, private customers and

intelligent investors. The claim: to always look at companies and providers,

products and services through the eyes of the customers. The customers are the

focus of DMSA's work. For them, important and decision-relevant information is

bundled and presented as market screenings. The aim is to create more

transparency for consumers when selecting products, investments and services.

Press release:

http://www.dmsa-agentur.de/download/20211110_DMSA_EVG_PM_en.pdf

Press contact:

Inga Oldewurtel

Press Officer

oldewurtel@prio-pr.de

Tel.: +49 176 62 26 18 97

Responsible for the content:

DMSA Deutsche Markt Screening Agentur GmbH

Wichertstraße 13

10439 Berlin

Germany

Michael Ewy

Managing Director

http://www.dmsa-agentur.de

Source: DMSA Deutsche Markt Screening Agentur GmbH