A judge from the High Court of Hong Kong this Monday ordered the liquidation of the assets of the Chinese real estate giant Evergrande. The order also implies changes at the top of the company, which failed to present a restructuring plan to its creditors.
Judge Linda Chan's order came in response to the request filed in 2023 by Top Chine Global, one of the creditors of the real estate company, which underwent intervention by the Chinese State and judicial authorities due to its excessive debt. In 2021, Evergrande's multiple cases against its lenders were uncovered, with which the company had debts worth $328 billion.
"Considering the obvious lack of progress on the part of the company in presenting a viable restructuring proposal. I consider it appropriate for the court to issue a liquidation order against the company and I order it so," the judge said in her ruling, which was picked up by AFP.
Following the court's decision, Evergrande's shares on the Hong Kong Stock Exchange plummeted by 20.8% and its trading was suspended. It did not affect the general climate of the Asian markets, which continued the day in an upward trend.
With the ordered liquidation of assets, the interested parties with whom Evergrande contracted debts will be able to access a return of those loans from the assets that the company has in possession. "Today's court decision is contrary to our original intention," Shawn Sui, the company's CEO, told the Chinese business newspaper 21st Century Business Herald. He added that "we can only say that we will try to do what we can and that it is very regrettable."
