Last week we reported on the massive real estate corporation based in Hong Kong with holdings throughout China, Evergrande.   Now the firm is readying for bankruptcy.

Here is our post last week.

EXCLUSIVE: The Beginning of China’s Economic Collapse? Largest Issuer of China’s Commercial Paper, Evergrande, Is Facing Bankruptcy, Entire World Economy Likely Impacted

Zerohedge reported this morning:

It took Evergrande less than a day to go from denying “rumors” of bankruptcy (as per a statement posted on its website earlier today), to confirming that a bankruptcy is imminent.

In a filing on the Hong Kong stock exchange on Tuesday, Evergrande which was busy trying to convince angry Chinese mobs that they will get their money and/or apartments and that it has no plans of default, the company all but conceded that a bankruptcy is imminent when it said it has hired notable bankruptcy advisors Houlihan Lokey and Admiralty Harbour Capital as joint FAs to “assess the firm’s capital structure”, a well-known euphemism of “prepare to file for bankruptcy.” And just so there was no doubt as to what is coming next, the company said if it’s unable to repay debts on time or get creditors to agree to extensions or alternative arrangements, it may lead to cross-default.

It quickly went downhill from there, with the company saying that it expects “significant continuing decline” in contract sales in September, resulting in “continuous deterioration” of cash collection, according to the statement. That will place “tremendous pressure” on the group’s cashflow and liquidity.

Finally, guaranteeing that a default is just a matter of days if not less, the company admitted that it has failed to make “material progress” on the sale of stakes in China Evergrande New Energy Vehicle Group Ltd. and Evergrande Property Services Group Ltd., while the sale of its office building in Hong Kong hasn’t been completed within the expected timetable.

Is this the beginning of the fall of the Chinese economy?

The post Hong Kong Behemoth in China Real Estate Readying for Bankruptcy – Is This the Beginning of a Massive China Real Estate Crash? appeared first on The Gateway Pundit.

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