5 months ago
BEIJING: A Hong Kong court has ordered the liquidation of the highly indebted China Evergrande Group, several media outlets reported on Monday, reported German news agency (dpa).
Judge Linda Chan handed down the judgment on Monday in Hong Kong, according to several media reports.
Creditors from abroad had taken the company to court because of its missing several payments. The real estate giant had previously tried to avert liquidation with a reorganisation plan.
The hearing had lasted a year-and-a-half and the company was still unable to put forward a concrete proposal for restructuring, Chan said, as reported by the South China Morning Post newspaper.
“I think it is the time for the court to say enough is enough,“ she said, according to the newspaper.
The group, which is listed on the Hong Kong stock exchange, is the world’s most indebted property developer with the equivalent of more than US$300 billion of debt.
The liquidation is likely to further diminish confidence in the ailing property market of the world’s second-largest economy and cause turbulence on the stock market, which the government recently tried to stabilise again.
On Monday, the shares of Evergrande Group subsidiaries were suspended from trading. -Bernama
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