Evergrande is fluctuating worryingly in the direction of insolvency

One thing is certain right now: The heavily indebted real estate company Evergrande is fluctuating worryingly in the direction of insolvency. Most recently, the rating agency Fitch made official with its revaluation of the group what many market observers have feared for months: Fitch downgraded the group, which is sitting on a mountain of debt of 300 billion US dollars, to the level of "limited loan default". With Standards & Poor's, the second rating agency is already expecting payment default at Evergrande. Both relate to the missed coupon payment by the Evergrande subsidiary Scenerey Journey, whose extension period expired on December 6th. Evergrande had already warned last week that the group could not guarantee that it would continue to meet its financial obligations. On Tuesday, two dollar bond creditors finally reported to Bloomberg that they were still waiting for the $ 82.5 million interest payment from Evergrande subsidiary Scenerey Journey after the 30-day grace period had expired. Evergrande also usually only met the previous interest payments as part of a deadline extension - and often only just before the deadline expired. A due payment of 83.5 million dollars was made by the group at the end of October only one day before the extension expired. He made another $ 47.5 million coupon payment shortly thereafter, just hours before the deadline. According to the Chinese business magazine "Caixin", the next coupon payments for dollar bonds amounting to 253 million dollars are waiting at the end of December, followed by a further payment of 415 million dollars in January.