A Hong Kong court has ordered property developer China Evergrande Group to liquidate after it was unable to reach a restructuring deal with creditors.
It was appropriate for the court to order Evergrande to wind up its business given a “lack of progress on the part of the company putting forward a viable restructuring proposal” as well as Evergrande’s insolvency, Judge Linda Chan said on Monday.
Evergrande was granted an earlier reprieve after it said it was attempting to “refine” a new debt restructuring plan of more than US$300 billion (A$455 billion) in liabilities.
Evergrande, the world’s most indebted property developer, is one of many property firms that ran into trouble when Chinese regulators cracked down on excessive borrowing in the real estate sector.
The company first defaulted on its financial obligations in 2021, just over a year after Beijing clamped down on lending to property developers in an effort to cool a property bubble.
(9 news)
