On Monday, 29 January 2024, a Hong Kong court issued its ruling for the Chinese real estate company Evergrande Group to liquidate. The company defaulted on its debt in 2021 and has been attempting to restructure its debt with creditors and its global assets since this happened.
The result of the court ruling comes from the failure of the company to agree with overseas creditors on how to restructure the debt. The Shenzhen-based developer was stated to have total liabilities of 2.39 trillion yuan ($333 billion USD) at the end of June 2023. Liquidators Alvarez and Marshal have already been appointed by Evergrande to seize Hong Kong assets as needed to raise funds for its creditors. It is unknown whether this will extend into mainland China, but Evergrande CEO Xiao En told state media that the liquidation order doesn’t affect the operations of subsidies that are “independent legal entities,” including its main property development business, Hengda Real Estate Group, which has most of its assets in mainland China.
The fate of the company is still unclear. The exposure of this recent news is yet to be seen in the wider real estate market and the sentiments of investors.
Learn more about this story at CNN.