In a landmark ruling, a Hong Kong court has mandated the liquidation of China Evergrande Group, the world’s most indebted property developer, as reported by German news agency (dpa). The decision, delivered by Judge Linda Chan on Monday, comes after a protracted legal battle with international creditors over missed payments and unsuccessful attempts by the real estate giant to avert liquidation through a reorganization plan.
The proceedings, which spanned over a year-and-a-half, saw Evergrande unable to present a viable restructuring proposal, leading to the court’s decisive intervention. “I think it is the time for the court to say enough is enough,” Judge Chan remarked, highlighting the gravity of the situation, as per the South China Morning Post.
Evergrande’s financial turmoil has been a focal point in the global property market, with the company shouldering an astronomical debt exceeding US$300 billion (RM1,418.25 billion). The court-ordered liquidation not only marks a significant juncture for the embattled firm but also poses profound implications for the property market in China, the world’s second-largest economy. This move is expected to further erode confidence in the already ailing sector and potentially trigger volatility in the stock market, which the government has been striving to stabilize.
In a consequential development on Monday, trading of shares belonging to Evergrande Group subsidiaries was suspended, signaling the immediate impact of the court’s decision on the financial markets.
