Fri. AM KTFA News Articles 12-10-21

270

KTFA

Samson » December 10th, 2021

Fitch confirms Chinese development giant Evergrande has stumbled for the first time

9th December, 2021

The credit rating agency, Fitch, announced Thursday that the giant Chinese real estate group Evergrande, which suffers from huge debts and worries financial markets, “defaulted” on its payment.

The group was supposed to pay $82.5 million on November 6, with an additional grace period that ended on Tuesday.

And Evergrande, which has debts of about $300 billion, is one of the largest real estate groups in China and employs two hundred thousand people, while its activity generates 3.8 million jobs in the country, according to the company. But the group, stifled by huge debts, has been struggling for several months to make interest payments and hand over apartments.

Observers have been following the group’s situation with concern for months, because its possible collapse could hamper the growth of the Asian giant.

The rating downgrade reflects non-payment of obligations due on November 6 of the $645 million TNG bond, and other dues after the grace period expired on December 6.

The company, which has total liabilities of $300 billion, warned late Friday that it may not have enough funds to meet its financial obligations.  “In light of the current liquidity situation, there is no guarantee that the group will have sufficient funds to continue to perform its financial obligations,” Evergrande said in a statement to the stock exchange. “We plan to actively participate” with external creditors in the restructuring plan, she added.

Evergrande faced an immediate test of its ability to repay creditors last Monday, December 6, 2021, after a 30-day grace period on interest payments on its dollar-denominated bonds expired.

Regulators also repeated earlier accusations that the company had run into trouble through a combination of poor management and blind expansion.

In the filing, Evergrande also said it had received a request from creditors to honor its pledge to guarantee payment of $260 million, adding that creditors may demand expedited payment if the company is unable to meet its debt obligations.  LINK

Source: Dinar Recaps

______________________________________________________

If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we’ll forward your request to the author.
______________________________________________________

All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.

Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.

Copyright © 2021 Dinar Chronicles