China, Evergrande in liquidation: the fall of the real estate giant

The High Court of the Hong Kong Special Administrative Region held a hearing on the liquidation petition against China Evergrande Group on Monday, ordering the company’s liquidation. Evergrande, with debts exceeding US$300 billion, had already faced a liquidation request from its creditors and was preparing a new debt restructuring plan. The liquidation application hearing resumed on Monday at the High Court, where Judge Linda Chan Ching-fan highlighted that Evergrande’s debt restructuring plan lacked progress and that the company’s assets were insufficient to cover its debts. .

Foreign creditors took the company to court over several failed payments. Previously, the real estate giant had tried to avoid liquidation with a reorganization plan. The hearing has been going on for a year and a half and the company has still not been able to present a concrete restructuring proposal, Chan said, as reported by the South China Morning Post. “I think it’s time for the court to say enough is enough,” Chan said. The group, listed on the Hong Kong stock exchange, is the most indebted real estate developer in the world, with debt equivalent to more than US$300 billion. The sell-off is expected to further dampen confidence in the struggling housing market in the world’s second-largest economy and cause turbulence in the stock market, which the government has recently sought to stabilize again. Following the announcement, Evergrande Group’s shares on the Hong Kong Stock Exchange fell by almost 21%, Evergrande New Energy Vehicle’s by 18% and Evergrande Property Services Group Limited’s by 2.5%, causing the group to suspend trading in your actions.

Source: IL Tempo