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