Saudi Press

Saudi Arabia and the world
Monday, Feb 09, 2026

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

Saudi Press
0:00
0:00
Close
Syria and Saudi Arabia Seal Multibillion-Dollar Investment Agreements to Drive Post-War Economic Reconstruction
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Foreign Governments and Corporations Spend Millions with Trump-Linked Lobbying Firm in Washington
KPMG Urges Auditor to Relay AI Cost Savings
Saudi Arabia Quietly Allows Wealthy Foreign Residents to Buy Alcohol, Signalling Policy Shift
US and Iran to Begin Nuclear Talks in Oman
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
German Chancellor Friedrich Merz Begins Strategic Gulf Tour with Saudi Arabia Visit
Dubai Awards Tunnel Contract for Dubai Loop as Boring Company Plans Pilot Network
Five Key Takeaways From President Erdoğan’s Strategic Visit to Saudi Arabia
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Erdoğan’s Saudi Arabia Visit Focuses on Trade, Investment and Strategic Cooperation
Germany and Saudi Arabia Move to Deepen Energy Cooperation Amid Global Transition
Saudi Aviation Records Historic Passenger Traffic in 2025 and Sets Sights on Further Growth in 2026
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Saudi Crown Prince Tells Iranian President: Kingdom Will Not Host Attacks Against Iran
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Trump Defends Saudi Crown Prince in Heated Exchange After Reporter Questions Khashoggi Murder and 9/11 Links
Saudi Stocks Rally as Kingdom Prepares to Fully Open Capital Market to Global Investors
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
Saudi Arabia scales back Neom as The Line is redesigned and Trojena downsized
Saudi Industrial Group Completes One Point Three Billion Dollar Acquisition of South Africa’s Barloworld
Saudi-Backed LIV Golf Confirms Return to Trump National Bedminster for 2026 Season
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
Saudi Arabia’s Careful Balancing Act in Relations with Israel Amid Regional and Domestic Pressures
Greenland, Gaza, and Global Leverage: Today’s 10 Power Stories Shaping Markets and Security
America’s Venezuela Oil Grip Meets China’s Demand: Market Power, Legal Shockwaves, and the New Rules of Energy Leverage
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Prince William to Make Official Visit to Saudi Arabia in February
Saudi Arabia Advances Ambitious Artificial River Mega-Project to Transform Water Security
Saudi Crown Prince and Syrian President Discuss Stabilisation, Reconstruction and Regional Ties in Riyadh Talks
Mohammed bin Salman Confronts the ‘Iranian Moment’ as Saudi Leadership Faces Regional Test
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
Strategic Restraint, Credible Force, and the Discipline of Power
Donald Trump Organization Unveils Championship Golf Course and Luxury Resort Project in Saudi Arabia
Inside Diriyah: Saudi Arabia’s $63.2 Billion Vision to Transform Its Historic Heart into a Global Tourism Powerhouse
×