Hong Kong court orders liquidation of real estate giant Evergrande
Evergrande, the largest Chinese real estate empire, will be liquidated after a Hong Kong court gave the order. The measure is applied after the company did not present a convincing restructuring plan
Evergrande, a Chinese real estate group that has been the headline of the news media for its million-dollar debts for some time, will be liquidated, sources indicated this Monday.
In 2023, Chinese real estate giant Evergrande was pressured by the court to present a viable restructuring plan. However, Judge Linda Chan of the High Court ordered the liquidation of the company on January 29 because it did not reach said goal.
The debts reported by the firm exceed USD 300,000 million. After the court’s decision was announced, Evergrande’s shares fell more than 20 % on the Hong Kong stock exchange“and its stock market listing was interrupted,” as was its listing of the electric car subsidiary.
The Evergrande crisis that has finally led the court to order its liquidation accelerated after a creditor presented, in 2023, the request for said process. The two parties began negotiations for an agreement that, unfortunately, was not achieved.
A lawyer representing the company’s creditors has indicated that the only person responsible for the liquidation is the real estate emporium itself. Even President Xi Jinping himself considered that the debt of Evergrande, and other firms in the sector, represented “an unacceptable risk to the economic well-being of the country.”
M.Pino
Source: DW
(Reference image source: Unsplash+, in collaboration with Mika Korhonen)
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