A Hong Kong court has ordered one of China’s biggest property developers, Evergrande Group, to liquidate after it was unable to reach a restructuring deal with creditors over hundreds of billions of dollars it owes.
Key points:
- Evergrande has been ordered to liquidate after failing to come up with a restructuring deal with creditors over US$300 billion in debts owed
- The liquidator will now attempt to take control of Evergrande assets outside China, but there are fears that could pave the way for other lawsuits
- It could take years for the offshore liquidator to take control of subsidiaries across mainland China
This Evergrande business has been hanging in the air for years now. I wonder what this news means in practice.
Same. I feel like I’ve been waiting for this Sword of Damocles to fall for the last decade. Until they actually break up, however, I’m still curious to see the ramifications.
China should have just ripped the bandaid off years ago.
I wonder if ripping it off might have caused a big enough economic problem to threaten the stability of the government.
They probably weighed what would happen then vs supporting the business for a while. Problem is no one can tell the future, so they got caught.
It may be the best case scenario for them still. This could be their “economic soft landing”.