China Evergrande ordered to liquidate, owing $300 bln [View all]
Source: Reuters
HONG KONG, Jan 29 (Reuters) - A Hong Kong court on Monday ordered the liquidation of property giant China Evergrande Group (3333.HK), opens new tab, a move likely to send ripples through China's crumbling financial markets as policymakers scramble to contain a deepening crisis.
The decision to liquidate the world's most indebted developer with more than $300 billion of total liabilities was made by Hong Kong Justice Linda Chan, who noted Evergrande had been unable to offer a concrete restructuring plan despite months of delays.
"It is time for the court to say enough is enough," she said.
Chan will deliver her reasons for granting the liquidation at 2:30 pm (0630 GMT). It is expected a provisional liquidator will be appointed to oversee Evergrande ahead of a permanent appointment.
Evergrande, which has $240 billion of assets, sent a struggling property sector into a tailspin when it defaulted on its debt in 2021 and the liquidation ruling will likely further jolt already fragile Chinese capital and property markets.
Read more: https://www.reuters.com/business/embattled-china-evergrande-back-court-liquidation-hearing-2024-01-28/
This is the first step in what could easily be a global economic catastrophe.
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