Two Chinese developers are insolvent

Two Chinese developers are insolvent

Chinese giant Evergrande has failed to settle multi-million dollar obligations. Fitch has downgraded its rating to limited solvency

Evergrande Group had until December 6 to pay investors coupons on two series of dollar bonds. They total $82.5 million. Bondholders have reported that they have not received the money. The company made no announcement on the matter or responded to Fitch. As a result, Fitch downgraded the group and its two subsidiaries to “limited insolvency”.

Evergrande’s liabilities exceed $300 billion. S&P had already indicated a few days ago that the company’s insolvency was inevitable. The company itself said on Dec. 3 that it was not guaranteed to repay the debt as it began a restructuring process. Its bankruptcy would have dire consequences not only in China.

Another Chinese property developer, Kaisa, is also in big trouble. Its debt is $11.6 billion. On December 8th, the Hong Kong Stock Exchange suspended trading in the company’s shares. Reuter agency says it is the result of the company’s problems with repayment of $ 400 million in debt, maturing on December 7. The company’s shares have already lost 75 percent since the beginning of the year. S&P analysts said in November that Kaisa’s bankruptcy will be difficult to avoid.

Source: https://www.money.pl/gielda/przelom-w-sprawie-evergrande-agencja-fitch-mowi-o-ograniczonej-niewyplacalnosci-6713526704118496a.html

https://www.bankier.pl/wiadomosc/Niewyplacalnosc-Evergrande-juz-oficjalna-8239781.html

https://www.rp.pl/nieruchomosci/art19177621-kaisa-kolejny-chinski-deweloper-bankrutem

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