January 29, 2024 – 06:19
A Hong Kong court ordered the liquidation of Chinese real estate giant Evergrande on Monday, reports A CNN Quoted from Chinese media. The precedent for the decision is that the most indebted real estate developer in the world was unable to reach an agreement with its creditors on restructuring the debt portfolio. According to the court, it will hold another hearing on the company's case on Monday, where an Evergrande liquidator may be appointed.
Evergrande has become a symbol of the Chinese real estate crisis, as the company's bankruptcy sparked a crisis in the entire real estate sector. Last June, Evergrande's total debt exceeded $328 billion. Trading in the real estate developer's shares was suspended in September after the company's president was arrested. According to suspicion, Huj Ka Jen transferred certain assets and assets of the Chinese real estate development company to offshore accounts.
One of the foundations of Evergande's business model was the pre-sale of unbuilt apartments. In effect, this means that hundreds of thousands of buyers are still waiting for the delivery of their already paid-for apartments, the completion of which is highly uncertain in the event of bankruptcy.
