China’s Evergrande Is Ordered to Liquidate
China’s Evergrande Is Ordered to Liquidate
China’s Evergrande , Is Ordered to Liquidate.
Hong Kong's High Court made the liquidation order on Jan.
29, CNN reports.
.
It seems to me that the interests of the creditors will be better protected if the company is wound up by the court, so that independent liquidators can take control over the company, Judge Linda Chan, via ruling.
The ruling comes after the most indebted property developer in the world failed to come to an agreement with overseas creditors about restructuring its debt for the past 19 months.
.
According to court documents, Evergrande owes overseas creditors $25 billion.
In 2021, the embattled real estate giant defaulted on its debt.
.
The company filed for bankruptcy last year in New York.
.
According to Evergrande CEO Xian En, the liquidation won't affect subsidy operations, as they are "independent legal entities.".
At present, the management and operation systems of Hengda Real Estate Group and other domestic and overseas subsidiaries as independent legal entities remain unchanged, Evergrande CEO Xian En, to '21st Century Business Herald'.
Kaiyuan Capital chief investment officer Brock Silvers echoed that claim, but pointed to the country's real estate crisis.
.
Today’s liquidation order will have very limited immediate impact on Evergrande’s onshore operations or assets, Brock Silvers, chief investment officer for Hong Kong-based Kaiyuan Capital, via CNN.
Evergrande’s offshore liquidation was mostly expected, but it’s still a significant setback for an already troubled onshore real estate sector, one which will further decay investor sentiment, Brock Silvers, chief investment officer for Hong Kong-based Kaiyuan Capital, via CNN
