A Tsunami Of Bankruptcy Is Coming From The East-Former Fitch Analyst Confirms That Evergrande Bankruptcy Is Evident-No Proof The Company Made Its Interest Payment As Advertised Last Friday
By Stan Szymanski
Yesterday, I wrote a piece titled ‘Whistling Past The Graveyard-Investors Cheer The Interest Payment Made By Evergrande at the 11th hour-The Veiled Risks And Deception Of The Orients’ Real Estate Developers’ because of my concern about the Evergrande situation turning into a global event. I name today’s article, ‘A Tsunami Of Bankruptcy Is Coming From The East’ after reading the English press release via PR Newswire out of Berlin by DMSA (Deutsche Markt Screening Agentur GmbH) regarding the research written by former Fitch analyst, Dr. Marco Metzler.
According to the press release Dr. Metzler and co-authors Ewy and Dam they…’demonstrate in detail in the report for the German market screening agency DMSA that international investors alone have put around 23.67 billion US dollars into 23 bonds and three large loans of the lurching property developer. Among the already known institutional investors are such well-known addresses as Fidelity, Blackrock, UBS, Ashmore Group, Prudential, HSBC, Pictet, Vontobel, BNP and Allianz. “At the same time, we are far from aware of all international investors, but only 148 investors with increased reporting obligations, such as fund companies, who have invested a total of $3.44 billion, are known. There could still be some negative surprises here,” believes Dr. Metzler.’…
In yesterday’s article I opined about the sheer number of banks and non-bank entities have exposure to Evergrande. Today, Dr. Metzler provides us with the beginnings of a list with names and exposure. Again, please be aware that this list he provides is -not exhaustive-. Many more names will appear and possibly even more liabilities as well as we reported yesterday that Fantasia Holdings had $150 Million in bonds that do not appear to have been reported in its financial statements. Will Evergrande also be found to have securities that it has not disclosed to the markets?
As I also relayed yesterday, investors cheered that Evergrande had reportedly made its past due $83.5 million interest payment with one day left before Evergrande would be declared bankrupt by the rating agencies. Please read what the Metzler et. al. via prnewswire press release has to say about this:…’The bankruptcy of Evergrande itself, on the other hand, has probably already occurred. As of Monday morning German time, no confirmation had been received – neither from Evergrande itself, nor from rating agencies on the ground, affected bond investors or banks involved – that overdue interest of $83.5 million had been paid at the end of last week – the last possible date of the 30-day grace period. So far, there are only unconfirmed press reports that the interest has been paid into escrow accounts.
However, it has not yet been received by the creditors. This would mean that the company would have gone bankrupt. But even if the interest had been paid this time, it would only be a postponement of insolvency. Because from now on, it will be one blow after the other: The next but one (also already in arrears) must be paid by November 10.’…
So according to Metzler, there is no confirmation that Evergrande actually made the $83.5 million payment even though the press was reporting that Citibank was in receipt of the money!!!
If this is true, it most certainly not only a confirmation that Evergrande is indeed bankrupt, but that the western financial press is compromised and not worth the salt that Edward R. Murrow would have put on his Spam sandwich.
In the newswires’ paragraph finale:…’In the view of the report authors, a bankruptcy of Evergrande has the potential to lead to extreme disruption of the global financial system – with bankruptcies of players that are still considered rock solid today. “Triggered by a Chinese financial virus called Evergrande, the world may be facing a ‘Great Reset’ – the final meltdown of the current global financial system,” Dr. Marco Metzler pessimistically concludes.’…
How much more convincing does the American public need to convince them to make provision for food, water, shelter, energy, security and if you have the wherewithal, -physical-precious metals to preserve what you have worked all of you life for? Are you trusting God to navigate through what life is getting ready to throw at all of us?
A tsunami is coming from the East. You must get to high ground so to say. This tsunami has the potential (not a guarantee-this is not financial advice-consult your advisor) to destroy life as we have known it. Can you trust The CCP to tell you the truth about Evergrande? What about the western press?
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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.