Hong Kong: High Court orders liquidation of Chinese developer Evergrande
The action of the Evergrande group lost 20% this Monday morning on the HK stock exchange, which suspended operations on the title, following the order for judicial liquidation of the Chinese real estate developer Evergrande, pronounced by the High Court of the Administrative Region special.
The partially removed company logo of China Evergrande Group is seen on the facade of its headquarters in Shenzhen, Guangdong province, China January 10, 2022. REUTERS/David Kirton/File Photo REUTERS - DAVID KIRTON
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with our correspondent in Hong Kong,
Florence de Changy
“
The hearing lasted a year and a half and the company has still not been able to present a concrete proposal”
to restructure its $328 billion in debt, Judge Linda Chan said this Monday morning at the opening of this new hearing at the High Court of Hong Kong. “
It is time for the court to say that enough is enough,
” she added before ordering the judicial liquidation of this colossal real estate developer, present in 230 cities in China with still more than 1,200 real estate projects in progress. .
The group
had until January 29 to present its restructuring plan
.
The Shenzhen-headquartered company is listed on the Hong Kong Stock Exchange.
Its founder, Hui Ka-yan, who was once at the head of the second largest fortune in China, was arrested in September, as were several managers of the group.
Read alsoChina: the boss of real estate giant Evergrande placed under house arrest
The liquidation of Evergrande risks having catastrophic implications, not only for Chinese banks but also for the millions of small investors who have already paid for unbuilt or unfinished housing and for the countless subcontractors in the sector who risk in turn bankruptcy.
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