DEVELOPING STORYDEVELOPING STORY, Economy
China’s property giant Evergrande ordered to liquidate as debt talks fail
Hong Kong court orders developer to wind up after finding company has no viable restructuring plan.
Evergrande Group is the world’s most indebted property developer [Ng Han Guan/AP]Published On 29 Jan 202429 Jan 2024
China’s troubled real-estate giant the Evergrande Group has been ordered to liquidate, a move likely to deal a new blow to confidence in the world’s second-largest economy.
A Hong Kong court made the ruling on Monday after the company failed to convince a judge it had a workable plan to restructure some $300bn in debts.
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“It would be a situation where the court says enough is enough,” Judge Linda Chan said. “I consider that it is appropriate for the court to make a winding up order against the company, and I so order.”
Evergrande had been granted a brief reprieve in December after arguing it was seeking to refine its restructuring plan.
Evergrande, the world’s most indebted developer, sent shockwaves through China’s vital property sector when it defaulted on its debt in 2021 following a crackdown by authorities on excessive lending.